Nigeria's central bank loosens rules for banks facilitating crypto transactions
Dec 22. 2023
By Ciaran Lyons
The Central Bank of Nigeria (CBN) has lifted restrictions on banks facilitating cryptocurrency transactions, nearly two years after imposing a total ban on banks dealing with digital currencies.
In a circular sent to banks on December 22, the CBN recognized that the increasing global demand and adoption of crypto make it unjustifiable to maintain the stringent restrictions imposed on financial institutions in 2021.
The statement noted:
“However, current trends globally have shown that there is a need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets.”
The stated guidelines aim to establish minimum standards and requirements for establishing banking relationships and opening accounts for virtual asset service providers (VASPs) in Nigeria.
Additionally, the guidelines aim to ensur robust risk management practices within the banking industry concerning the activities of licensed VASPs.
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