The Central Bank of Nigeria has lifted the ban on cryptocurrency transactions. However, the Central Bank of Nigeria feels that there is a need to regulate crypto-related activities in the current global context. News Reuters and Time News.
According to a circular from the Central Bank of Nigeria, the Central Bank of Nigeria (CBN) has lifted the ban on cryptocurrency transactions. In addition, the country’s central bank also feels that there is a need to regulate crypto-related activities in the current global context.
Earlier, in 2021, the CBN banned banks and financial institutions from trading in crypto assets, citing the risk of money laundering and terrorist financing.
In a circular on December 22, the CNB said, in the current global context, it is necessary to regulate the activities of Virtual Asset Service Providers (VASPS), including cryptocurrencies and crypto-assets.
The recent guidelines issued by the central bank explain how banks and financial institutions (FIs) will open accounts. Also, a settlement account and settlement service are prescribed. It will be used as a foreign exchange flow and trading channel by crypto asset trading companies. Apart from that, VASPS needs to obtain a license from the Nigerian SEC to engage in crypto business.
