Nigeria’s Central Bank Fleshes Out New Rule Allowing Crypto Firms’ Access to Bank Accounts
The Central Bank of Nigeria (CBN) has issued guidelines for banks on digital assets, indicating a shift in the country's previously strict stance on cryptocurrencies. The guidelines provide more information on the decision to open accounts for virtual asset service providers, a significant change for Africa's largest economy, which previously banned financial institutions from servicing crypto firms. The new rules do not lift restrictions on banks holding or trading cryptocurrencies for themselves. Cash withdrawals from crypto accounts and clearing third-party checks through virtual asset-holding accounts remain prohibited. This move aligns with recent initiatives in neighboring African nations, where cryptocurrencies are increasingly used as a hedge against inflation. In 2022, Botswana passed a law regulating digital assets, and the Bank of Mauritius plans to launch a central bank digital currency.
