After prohibiting transactions in cryptocurrencies across Nigeria on February 5, 2021, the Central Bank of Nigeria (CBN) has changed its stance. The CBN has now reversed that ban and taken a positive posture towards digital assets, issuing new guidelines to financial institutions for crypto trading.
When the unpopular policy was put in place in February 2021 to address money laundering and terrorism financing, many Nigerian companies had to go under the radar, either relocating abroad or shutting down business completely. Nigeria’s burgeoning young and tech-savvy crypto population also suffered a huge setback.
The CBN relaxed the ban last Friday (Dec. 22), saying global trends had shown a need to regulate the activities of crypto companies in Nigeria, which it calls virtual asset service providers (VASPs).
The latest development allows banks in Nigeria to run bank accounts for licenced VASPs, provide them with designated settlement accounts, and act as channels for forex inflows and trade. But banks were still barred from trading, holding or transacting virtual currencies on their account, the CBN said.
Read more: https://techcabal.com/2023/12/23/cbn-lifts-crypto-an/
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
