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Nigeria’s apex bank expanded on its decision to reverse a crypto ban on financial service providers, providing clear rules to oversee operations moving forward.&nbsp; 
The Central Bank of Nigeria (CBN) announced stringent rules for banks as the watchdog pivoted away from a blanket crypto ban toward regulation for virtual asset service providers, citing a need to align with global trends underpinned by blockchain technology and digital assets.&nbsp; 
According to the <a href="https://www.bloomberg.com/news/articles/2024-01-03/nigeria-slaps-strict-rules-on-banks-after-lifting-cryptocurrency-ban?utm_source=telegram&amp;utm_content=crypto&amp;utm_medium=social" data-type="link" data-id="https://www.bloomberg.com/news/articles/2024-01-03/nigeria-slaps-strict-rules-on-banks-after-lifting-cryptocurrency-ban?utm_source=telegram&amp;utm_content=crypto&amp;utm_medium=social" target="_blank" rel="noreferrer noopener">CBN</a>, operators like crypto exchanges and digital asset brokers can only open naira-denominated bank accounts. Nigeria’s top bank also said cash withdrawals are prohibited, and companies cannot clear third-party checks via their crypto accounts. Other withdrawal types will be limited to two per quarter as well.&nbsp; 
 You might also like: <a href="https://crypto.news/central-bank-of-nigeria-reverses-crypto-ban/"> Central Bank of Nigeria reverses crypto ban </a> 
In December, Africa’s most populous nation lifted its ban on crypto transactions. The <a href="https://crypto.news/nigerian-central-bank-lifts-ban-on-crypto-transactions/" target="_blank" rel="noreferrer noopener">shift</a> allowed banks to service virtual asset operators and opened a path for crypto firms to <a href="https://crypto.news/yellow-card-crypto-exchange-pursues-licensing-nigeria/" target="_blank" rel="noreferrer noopener">acquire</a> business licenses. 
Furthermore, a consortium of local financial entities and blockchain firms is working on Nigeria’s first regulated stablecoin, <a href="https://crypto.news/nigeria-to-launch-first-regulated-stablecoin/">cNGN</a>. The digital currency could join the leagues of <a href="https://crypto.news/nigerias-central-bank-confident-about-local-cbdc-enaira/" target="_blank" rel="noreferrer noopener">eNaira</a>, a central bank digital currency issued by the CBN.&nbsp; 
However, the CBN warned that banks remained barred from holding cryptocurrencies or trading digital assets due to fraud and financial risk concerns.&nbsp; 
With the move, Nigeria joined other African countries in recognizing Bitcoin and cryptocurrencies as blockchain adoption is fast becoming a reality across the continent. The so-called giant of Africa ranked second on the Global Crypto Adoption Index Top 20 published by <a href="https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/" target="_blank" rel="noreferrer noopener">Chainalysis</a>. 
 Read more: <a href="https://crypto.news/bahamas-jamaica-and-nigeria-pioneer-cbdc-adoption/"> Bahamas, Jamaica, and Nigeria pioneer CBDC adoption </a>

Nigerian central bank publishes rules for opening crypto accounts

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