Nigeria's central bank relaxes regulations on banks that support cryptocurrency trading

Nearly two years after implementing a blanket ban on banks engaging in digital currencies, the Central Bank of Nigeria (CBN) has now lifted restrictions on Nigerian banks to facilitate cryptocurrency trading.

In a circular sent to banks on December 22, the CBN recognized the growing global demand and acceptance of cryptocurrencies that warrants maintaining the strict restrictions imposed on financial institutions in 2019. 2021 is unjustified.
The statement noted:

 “However, current global trends have pointed to the need to regulate the operations of virtual asset service providers (VASPs), including cryptocurrencies and cryptoassets.”
These guidelines aim to establish minimum standards and requirements for establishing banking relationships and opening accounts for virtual asset service providers (VASPs) in Nigeria.
Additionally, these guidelines are intended to ensure robust risk management practices in the banking industry with respect to the operations of licensed VASPs.
However, the statement emphasized that financial institutions are still prohibited from holding, trading or making transactions in cryptocurrencies using their own accounts.
In February 2021, the Central Bank of Nigeria imposed a ban on all regulated financial institutions from providing services to exchanges in the country.
Meanwhile, in recent news, the local blockchain industry called on the Nigerian federal government to implement regulations that would promote widespread integration of approved blockchain policy in the country.
Obinna Iwuno, chairperson of Stakeholders in Blockchain Association of Nigeria (SiBAN), recently emphasized the need to establish a regulatory framework to accelerate the introduction of blockchain technology into various sectors of the economy. .
Iwuno said that Nigeria is fully equipped to implement blockchain technology:
“We are ready for full adoption now and the government-initiated blockchain policy will position Nigeria as a pioneer in the continent's digital economy landscape if fully implemented. enough".