CBN Modifies Crypto Policy: Restricts Cash Withdrawals, Imposes Tight Transaction Rules

CBN has put out new rules for cryptocurrency transactions, days after removing the ban on virtual asset transactions.
By Nausheen Thusoo
Updated July 18, 2025

Nigeria’s central bank, CBN, has put out new rules for cryptocurrency transactions, days after removing the ban on virtual asset transactions.

Advertisement
Advertisement

CBN brings crypto providers within a banking framework

Last week, the Central Bank of Nigeria relaxed its regulations, permitting virtual asset service providers, including cryptocurrency exchanges, to operate bank accounts, marking a major shift from its earlier ban.

Now, the new guidelines prohibit cash withdrawals and issuance of third-party cheques from holders of crypto bank accounts. Business Post cited CBN circular, noting, “Except for settlement of a virtual/digital assets transaction which shall be done through a transfer to another designated account, the withdrawal shall be only through a managers’ cheque or transfer to an account,”

Advertisement
Advertisement

Nigeria to embrace digital assets after long-standing bans

Nigeria has finally stepped into the realm of digital assets after a heavy ban on transactions of cryptocurrency. The country potentially has the power to become a hub of digital transactions in the region, according to a Google trends analysis.

The ban was imposed in 2021 after a bunch of people used cryptocurrencies to fund a nationwide protest in October 2020.

However, the new guidelines by the country’s central bank stem from the belief that “Nigeria can no longer afford to keep pushing digital assets underground, for obvious economic and security reasons.”

Earlier in May, Nigeria’s Securities and Exchange Commission also started mulling digital rules to allow the listing of tokens.

Advertisement
Advertisement

CBN restricts banks from using digital assets for their use

Despite the new sigh of relief in digital and virtual asset transactions in Nigeria, banks will still not be allowed to use cryptocurrencies for their personal use.  The restrictions come in the wake of stricter regulatory measures globally. This is possibly to ensure that crypto-based transactions are not misused by Nigerians.

CBN has also ordered financial institutions to not open or permit the operation of any account by any person to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the laid-down guidelines.

Advertisement
Nausheen Thusoo
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.