Bank

Cryptocurrency

Partner

<div class="insidebitcoins">
 <p>In its most recent circular, the Central Bank of Nigeria (CBN) announced the lifting of the prohibition on crypto<a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> transactions. This decision was influenced by the need to regulate virtual asset service providers (VASPs) in light of global trends, as highlighted by the bank. The CBN’s action reverses its previous stance from February 2021, where it forbade banks and other financial institutions from engaging in or facilitating dealings in crypto assets. The bank’s initial ban was rooted in concerns over the risks of money laundering and financing terrorism.</p>
 <h2 id="embracing-digital-transformation-nigeria-adopts-regulatory-framework-for-cryptocurrency-trade">Embracing Digital Transformation: Nigeria Adopts Regulatory Framework for Cryptocurrency Trade</h2>
 <p>Further emphasizing the country’s shift towards a more regulated crypto<a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> environment, the Nigerian Securities and Exchange Commission (SEC) issued regulations for digital assets in May of the previous year. This move by the SEC was seen as an effort to balance between outright prohibition and uncontrolled usage of crypto assets. Nigeria, known for its large and technologically adept population, has witnessed significant growth in crypto<a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> adoption, particularly among its youth. For instance, peer-to-peer trading on crypto exchanges has become increasingly popular as a means to bypass traditional financial channels.</p>
 <p>The CBN, in its circular dated December 22, outlined detailed guidelines for banks and financial institutions (FIs) regarding the handling of crypto<a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> transactions. These guidelines specify the procedures for opening accounts, providing designated settlement accounts and services, and facilitating forex inflows and trade for entities involved in crypto asset transactions. However, the CBN maintains restrictions on banks, prohibiting them from trading, holding, or directly transacting in cryptocurrencies.</p>
 <blockquote>
  <p>“From the commencement of these Regulations, Fl shall not open or permit the operation of any account by any person or entity to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the requirement of these Guidelines”</p>
 </blockquote>
 <p>To participate in the crypto business, VASPs are required to obtain a license from the Nigerian SEC. The CBN’s regulations mandate that financial institutions should not open or allow the operation of any accounts for virtual or digital asset businesses unless these accounts are specifically designated for such purposes and comply with the newly established guidelines.</p>
 <p>This renewed approach to crypto<a rel="noopener noreferrer nofollow" title="currency" href="https://thebittimes.com/tag/currency.html">currency</a> in Nigeria reflects a significant change in the country’s financial landscape. According to a report by New York-based blockchain research firm Chainalysis in September, Nigeria’s crypto transaction volume grew by 9% year-over-year, reaching $56.7 billion between July 2022 and June 2023. This growth underscores the country’s dynamic and evolving relationship with digital currencies.</p>
 <h3 id="related-news">Related News</h3>
 <ul>
  <li>Nigeria seeks partners for a technological upgrade of its digital currency, the eNaira</li>
  <li>MetaMask And MoonPay Partner To Allow Nigerians Purchase Crypto Via Bank Transfer</li>
  <li>Asset-Backed Tokens Will Be Allowed by Nigeria’s SEC, But Not Crypto</li>
  <li>Nigeria Begins Process To Legalize Cryptocurrency Use</li>
 </ul>
 <p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/revival-of-cryptocurrency-operations-in-nigeria-central-bank-reverses-ban-tbt86324.html">https://thebittimes.com/revival-of-cryptocurrency-operations-in-nigeria-central-bank-reverses-ban-tbt86324.html</a></p>
</div>

Revival of Cryptocurrency Operations in Nigeria: Central Bank Reverses Ban

Table of Contents

TheBitTimes

Other articles published on Apr 24, 2024

Crypto Market Trends and Predictions

Exploring Current Market Dynamics and Future Projections for Bitcoin and Ethereum

SEC targets Uniswap Labs, raising concerns over open-source code liability

Top 5 Crypto Sportsbooks: A Comprehensive Guide to the Best Gambling Sites

Block Inc Successfully Wraps Up Bitcoin Mining Chip Development

XRP Lawsuit: Hogan Predicts Summer Verdict, $100M Fine for Ripple

Join our free newsletter for daily crypto updates!