To Reuters report, the Central Bank of Nigeria (CBN) has lifted the ban on cryptocurrency-based transactions. In February 2021, the Central Bank of Nigeria prohibited banks and financial institutions from trading with cryptocurrencies to prevent risks such as money laundering and terrorist financing.
Nigeria’s Securities and Exchange Commission (SEC) introduced regulations for digital assets in May last year, showing that Africa’s most populous country is struggling to find common ground between an outright ban on crypto-assets and its unregulated sectors.
The Central Bank of Nigeria says recent developments have shown that the activities of VASPs (virtual asset service providers) that include cryptocurrencies and assets related to cryptocurrencies should also be legalized and one of these laws is to obtain a license from the Nigerian Securities and Exchange Commission to operate. It is in the field of trading cryptocurrencies.
Other things that can be mentioned are the rules related to account opening and settlement services. There are also frameworks that relate to how banks and financial institutions operate as channels for forex deposits. Another part of the rules is related to the trading platform of companies that conduct their transactions with crypto.
In a statement, the Central Bank of Nigeria says: “With the start of the implementation process of these regulations, banks and financial institutions should not allow individuals and entities to open accounts and operate in the field of virtual/digital asset transactions; Unless they make sure that the opening of the account is in line with the established regulations and requirements.”
The active young people in the field of technology in Nigeria are enthusiastically using cryptocurrencies; For example, one of its applications is the transaction through the peer-to-peer network provided by digital currency exchanges to avoid financial sectors.
Chainalysis, a research company specializing in blockchain, said in September that the volume of crypto transactions in Nigeria between July 2022 and June 2023 has grown by 9 percent compared to last year. It has reached 56.7 billion dollars.