The Central Bank of Nigeria decided to unban banking services for crypto companies.
Nigeria is a blockchain technology-loving country. In Oct 2021, the Nigerian Central Bank (CBN) launched its digital sovereign currency e-Naira, or say Nigerian Central Bank Digital Currency (CBDC). In Dec 2022, the Nigerian population showed a significant inclination toward e-Naira following currency demonetization. CBN was never a fan of cryptocurrencies and imposed a banking ban on the crypto companies in Feb 2021.
On 22 Dec 2023, The Central Bank of Nigeria (CBN) published a new circular regarding the Feb 2021 crypto banking ban decision and admitted that the situation has now changed.
CBN confirmed that it just lifted the banking ban for the crypto companies or the companies dealing with virtual assets.
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According to CBN, the banking ban was a collaborative step of multiple Nigerian agencies to prohibit the misuse of cryptocurrencies e.g. money laundering & terrorist financing.
So now all the crypto companies which want to get banking partners in the Nigerian jurisdiction are required to comply with anti-money laundering measures (AML) as well as other laws.
JUST IN:
The Central Bank of Nigeria lifts the banking ban on Virtual Asset Service Providers that’s been in place since February 2021.#Bitcoin now has a much clearer path forward in a country of 220 million
pic.twitter.com/8rm9WE84V7
— Bitcoin News (@BitcoinNewsCom) December 22, 2023
The published advisory also noted that the Nigerian securities regulatory body updated some rules & brought some new rules for the crypto-related activities e.g. regulatory framework for the crypto sector, offerings of crypto investment, and custody of crypto assets.
It is worth it to note that the Nigerian Central Bank also ordered the citizens not to buy cryptocurrencies but the Bank failed to bring any strict rules to prohibit crypto-related activities.
The majority of the people are trading cryptocurrencies via P2P trading methods.
Interestingly this crypto-friendly decision by the Nigerian central bank came amid the crypto bull phase and it will help 220 million Nigerians to make a clear decision to invest in cryptocurrencies.
Read also: Cardano ambassador advocates to use $ADA as currency in Argentina
Nigeria lifts crypto banking ban amid crypto bull sentiments
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