Nigeria: Yellow Card Foresees Spike in Crypto Usage in 2024 Following CBN Circular

Yellow Card, a crypto exchange operating in Nigeria, foresees a substantial increase in cryptocurrency usage in the country next year. The statement follows a recent circular by the Central Bank of Nigeria (CBN), which effectively lifted banking restrictions for all crypto players.

Also Read: Central Bank of Nigeria (CBN) Nullifies Banking Restrictions On Crypto Players

Nigeria advocating regulation

Lasbery Oludimu, the Chief Data Protection Officer and Vice President of Legal, Commercial, and Product at Yellow Card, told Nairametrics that the CBN’s decision would impact the outlook of the general public and traditional financial institutions towards cryptocurrencies.

The official told the paper that the removal of the ban offers the regulator’s recognition of digital assets to a certain extent.

According to Oludimu, this regulatory change could lead to more cooperation between traditional financial entities and the cryptocurrency space.

Soon after CBN revised its stance on virtual asset providers, Yellow Card Exchange was among the first crypto trading platforms in Africa that noted it was actively looking for a license in Nigeria.

Meanwhile, Quidax, another major cryptocurrency exchange in the region, announced the introduction of a complimentary bank account deposit and withdrawal service for its Nigerian clientele.

Highlighting the impact of the CBN’s guidelines, Oludimu noted that they are likely to build trust and confidence for crypto businesses operating in the region.

“With the new policy fostering a regulated environment, Yellow Card anticipates a surge in user adoption and engagement in the coming months,” he said. 

Nigeria might be one of the many countries moving towards regulating cryptocurrencies. This comes after the International Monetary Fund (IMF), in collaboration with the Financial Stability Board (FSB), cautioned against an umbrella ban on digital assets. The agencies advocated for targeted regulatory measures in a joint report this year.

The global agencies also emphasized enforcing regulations around money laundering and terrorist financing (AML/CFT) to address some of the risks in the sector. 

Also Read: Yellow Card Exchange to Seek Licensing as Nigeria Lifts Crypto Ban
Also Read: Quidax Offers Free Bank Transfers for Crypto Transactions in Nigeria