Just In: Central Bank of Nigeria (CBN) Nullifies Banking Restrictions On Crypto Players
The Central Bank of Nigeria (CBN) has eased its strict regulations on virtual asset service providers (VASPs), which include cryptocurrency exchanges. The apex body has allowed them to operate accounts with banks and other financial institutions in a significant policy shift.
Local papers outlined the recent circular that marks a notable change from CBN’s previous ban.
Also Read: Binance Declared “Illegal” By Nigeria SEC, Ordered To Cease Operations
Nigeria embraces regulation over ban
In 2021, CBN directed banks to close accounts associated with crypto businesses. Nigeria was reportedly fighting money laundering and terrorism financing concerns with the ban. Considering there was no policy framework at the time to protect retail consumers.
However, reports note that the global shift towards crypto regulations has led to the relaxation of the ban.
In a discussion with the local paper BusinessDay, a cryptocurrency exchange operator expressed optimism, viewing this as a sign of “good times ahead” for Nigeria’s cryptocurrency sector.
While this could mean growth opportunities for domestic crypto-related businesses, CBN still maintains a cautious approach.
Trading restrictions are still in place
Banks in Nigeria are not permitted to hold, trade, or transact in virtual currencies. They can only facilitate crypto transactions as per the new rules. However, it has provided legal recognition to virtual asset service providers (VASPs) under Section 30 of the Money Laundering Act of 2022.
Notably, the Financial Action Task Force (FATF) has mandated that VASPs be regulated to mitigate the risks of money laundering and terrorism financing (ML/FT). Furthermore, the inclusion of VASPs in Nigeria’s Money Laundering (Prevention and Prohibition) Act of 2022 necessitates regulatory oversight as financial institutions.
Crypto is no longer illegal in Nigeria.
It’s fair to run with this narrative.
— Harri Obi (@Harri_obi) December 22, 2023
Earlier in May, Nigeria’s Securities and Exchange Commission also started mulling digital rules to allow the listing of tokens. Additionally, the SEC introduced rules on the issuance, offering, and custody of digital assets and VASPs.
And now CBN’s most recent guidelines appear to steer towards a more liberal regulatory framework for cryptocurrencies in Nigeria.
Also Read: Nigerian SEC Mulling Support for Asset-Backed Token Over Crypto
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration
- SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal 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.
