From Ban To Regulation: Nigeria Sets Tough Terms For Crypto Banking
Nigeria's central bank has issued new guidelines for banks dealing with cryptocurrency accounts, lifting a ban on banks operating accounts for digital currency service providers. The guidelines prohibit banks from holding or trading virtual assets on clients' behalf, allowing only naira-based accounts with no cash withdrawals. This shift reflects the central bank's recognition of the global trend of virtual asset service providers. Nigeria has seen a 9% year-over-year increase in crypto transactions, totaling $56.7 billion between July 2022 and June 2023, driven by economic challenges and a depreciation in the naira's value. Despite challenges, the Central Bank of Nigeria lifted restrictions on banks and financial institutions operating accounts for virtual asset service providers in December, aiming to foster a regulated digital currency environment.
