CBN lifts ban on cryptocurrency transactions
The Central Bank of Nigeria (CBN) has lifted its previous prohibition on cryptocurrency transactions.
The ban on crypto trading was instituted in February 2021 due to concerns about potential money laundering and terrorism financing risks associated with cryptocurrencies.
It was seen as a significant hindrance to the rapidly growing Nigerian crypto community, which previously enabled crypto-to-fiat deposits and withdrawals through bank accounts.
When the policy was enacted, numerous Nigerian businesses faced challenges, with some reportedly relocating their operations abroad or closing altogether.
This new directive marks a promising turn for Nigeria’s tech-savvy population, who have shown a keen interest in embracing digital currency. Investors in Nigeria can now handle crypto-centric transactions through their bank accounts, simplifying their ability to trade and engage with digital assets across various exchanges and payment services.
However, the updated guidelines, which supersede those of January 2017 and February 2021, still continue to prohibit banks and financial institutions from trading or transacting in virtual currencies independently, with the CBN insisting that compliance to the new guidelines is mandatory and immediate.