Dec 23, 2023

How Banks Can Facilitate Crypto Transactions with New Rules from Nigeria’s Central Bank

Cryptocurrency Transactions Now Allowed in Nigeria After a two-year ban on banks engaging in digital currencies, the Central Bank of Nigeria (CBN) has now lifted restrictions on Nigerian banks facilitating cryptocurrency transactions. On Dec. 22, the CBN issued a circular to banks recognizing the rising global demand and adoption of crypto, making it unreasonable to…

Nigeria's Central Bank Loosens Rules for Banks Facilitating Crypto Transactions with Web 3.0 Technology.
Nigeria’s central bank loosens rules for banks facilitating crypto transactions

Cryptocurrency Transactions Now Allowed in Nigeria

After a two-year ban on banks engaging in digital currencies, the Central Bank of Nigeria (CBN) has now lifted restrictions on Nigerian banks facilitating cryptocurrency transactions.

On Dec. 22, the CBN issued a circular to banks recognizing the rising global demand and adoption of crypto, making it unreasonable to continue the stringent restrictions imposed on financial institutions in 2021.

The statement noted:

The guidelines aim to establish minimum standards and requirements for establishing banking relationships and opening accounts for virtual asset service providers (VASPs) such as spell token crypto, poly crypto, reef crypto, stacks crypto, pond crypto, pepe crypto, safemoon crypto, shiba inu crypto today, shib crypto today, and web 3.0 technology in Nigeria.

Crypto Regulations in Nigeria

The banking industry in Nigeria is expected to adhere to stringent risk management practices when dealing with licensed VASPs, as outlined in the guidelines. Furthermore, financial institutions are not allowed to hold, trade or conduct transactions in cryptocurrency using their own accounts.

In February 2021, Cointelegraph reported that the Central Bank of Nigeria had put a ban on all regulated financial institutions from providing services to crypto exchanges in the country. Subsequently, the local blockchain industry called on the federal government of Nigeria to implement regulations that will enable the widespread integration of the approved blockchain policy in the country.

The crypto industry has seen an influx of new tokens, such as spell token, poly crypto, reef crypto, stacks crypto, pond crypto, pepe crypto, safemoon crypto, shiba inu crypto and shib crypto. Moreover, the advent of web 3.0 technology has further revolutionized the crypto space.

Obinna Iwuno, the president of the Stakeholders in Blockchain Association of Nigeria (SiBAN), recently underlined the need for a regulatory framework to spur the adoption of blockchain technology across multiple sectors of the economy.

Iwuno told Cointelegraph that Nigeria has all the resources to integrate blockchain technology: “We have all the necessary components in place – spell token crypto, poly crypto, reef crypto, stacks crypto, pond crypto, pepe crypto, safemoon crypto, shiba inu crypto today, shib crypto today and, of course, the Web 3.0 technology.”

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