Did the Central Bank of Nigeria lift restrictions on cryptocurrency transactions?

The Central Bank of Nigeria has lifted its restrictions on cryptocurrency transactions in commercial banks. This is according to a circular dated December 22, 2023with reference number FPR/DIR/PUB/CIR/002/003 and signed by Haruna Mustafa the apex bank’s Director, Financial Policy and Regulation Department.

Are Nigerian banks allowing cryptocurrency transactions?

Nearly two years after enforcing a comprehensive ban on banks engaging with digital currencies, the Central Bank of Nigeria (CBN) has now lifted restrictions on Nigerian banks facilitating cryptocurrency transactions.

Why was the apex bank ban lifted?

According to the apex bank, the ban was lifted because current global trends have shown that there’s a need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrency and crypto assets. Also, the CBN said Section 30 of the Money Laundering Act of 2022 now recognises VASPs as part of a financial institution.