The Central Bank of Nigeria (CBN) initially implemented a ban on local financial institutions dealing in or facilitating payments for cryptocurrency exchanges. Citing concerns about money laundering, terrorism financing, cybercrime, and cryptocurrency volatility, the CBN aimed to mitigate these risks.
However, on December 22, 2023, the CBN reversed its stance and lifted the ban. It directed banks and other financial institutions to offer cryptocurrency services, adhering to operational guidelines for Virtual Assets Service Providers (VASPs). VASPs are defined as entities facilitating the exchange of cryptocurrencies with fiat currencies or the transfer of crypto assets.
This shift in policy reflects a departure from the CBN’s previous restrictive stance on cryptocurrency transactions. The new guidelines provide a framework for the orderly conduct of cryptocurrency services in Nigeria, aiming to balance innovation and risk management. CONTINUE READING
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