Close Menu
Innovation Village | Technology, Product Reviews, Business
    Facebook X (Twitter) Instagram
    Tuesday, July 22
    • About us
      • Authors
    • Contact us
    • Privacy policy
    • Terms of use
    • Advertise
    • Newsletter
    • Post a Job
    • Partners
    Facebook X (Twitter) LinkedIn YouTube WhatsApp
    Innovation Village | Technology, Product Reviews, Business
    • Home
    • Innovation
      • Products
      • Technology
      • Internet of Things
    • Business
      • Agritech
      • Fintech
      • Healthtech
      • Investments
        • Cryptocurrency
      • People
      • Startups
      • Women In Tech
    • Media
      • Entertainment
      • Gaming
    • Reviews
      • Gadgets
      • Apps
      • How To
    • Giveaways
    • Jobs
    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»News»Nigeria’s Central Bank Lifts Cryptocurrency Transaction Ban, Embracing Regulatory Approach
    Cryptocurrency

    Nigeria’s Central Bank Lifts Cryptocurrency Transaction Ban, Embracing Regulatory Approach

    0
    By Staff Writer on December 26, 2023 News

    In a significant shift, Nigeria’s Central Bank has decided to lift the ban on transacting in cryptocurrencies, acknowledging global trends that emphasize the necessity of regulating such activities. This reversal comes after the Central Bank of Nigeria (CBN) imposed a ban in February 2021, prohibiting banks and financial institutions from engaging in or facilitating transactions involving crypto assets due to concerns related to money laundering and terrorism financing risks.

    Following this ban, Nigeria’s Securities and Exchange Commission (SEC) took steps in May of the same year by publishing regulations for digital assets. These regulations aimed to strike a balance between avoiding an outright ban on crypto assets and preventing their unregulated use in Africa’s most populous country.

    In a circular dated December 22, the CBN stated that recent global trends underscore the importance of regulating virtual asset service providers (VASPs), encompassing cryptocurrencies and crypto assets. The new guidelines outline how banks and financial institutions should approach transactions involving crypto assets. This includes opening designated accounts, providing settlement services, and serving as channels for foreign exchange inflows and trade for firms dealing in crypto assets.

    For VASPs to participate in the crypto business, the CBN mandates that they obtain a license from the Nigerian SEC. The circular emphasizes that financial institutions should not open or allow the operation of any account for conducting virtual/digital asset business unless it aligns with the specified guidelines.

    However, it’s noteworthy that the CBN still maintains the prohibition on banks trading, holding, or transacting in cryptocurrencies. This cautious approach reflects the delicate balance that regulatory authorities aim to strike between embracing innovation and addressing potential risks associated with the burgeoning crypto space.

    Nigeria’s youthful and tech-savvy population has been quick to embrace cryptocurrencies, often resorting to peer-to-peer trading on crypto exchanges to navigate around the traditional financial sector. According to a report by New York-based blockchain research firm Chainalysis in September, the volume of crypto transactions in Nigeria experienced a notable 9% year-over-year growth, reaching $56.7 billion between July 2022 and June 2023.

    Related

    cryptocurrency
    Share. Facebook Twitter Pinterest LinkedIn Email
    Staff Writer
    • Website

    I am a staff at Innovation Village.

    Related Posts

    Transsion Holdings eyes global expansion with planned Hong Kong listing

    Qoray partners with TotalEnergies to strengthen EV after-sales support in Nigeria

    Standard Bank acts as Joint Bookrunner in $75M Karooooo Nasdaq offering

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Copyright ©, 2013-2024 Innovation-Village.com. All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.