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Central Bank of Nigeria Reverses the Crypto Bans and Issues New Guidelines

CBN has lifted the ban and enabled the crypto community to carry out crypto transactions and other crypto-related services under the given set of guidelines.

ShahZaib Ahmed

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CBN lifts ban on crypto

The Central Bank of Nigeria (CBN) lifted the ban imposed on crypto and issued a new set of guidelines for Virtual Assets Service Providers (VASPs). According to the media reports, CBN issued a circular on 22nd of December 2023 regarding the guidelines for VASPS to all banks and financial institutions of Nigeria. This circular is a positive sign for the crypto community residing in Nigeria which has been restricted from crypto-related services and transactions.

CBN Releases Circular to VASPs

Central Bank of Nigeria’s released circular is duly signed by the Director of Financial Policy and Regulation Depart of Apex Bank, Haruna Mustapha. Mustapha’s signed circular signals a major shift from the original position and stance of CBN which have restricted the crypto transactions till now.

This official circular enables banks and OFIs to offer crypto-related services to the crypto community following global trends. The Circular says that there is no such need to regulate VASPs (virtual assets service providers) which mainly include digital assets and cryptocurrencies. For now, CBN has lifted the ban and enabled the crypto community to carry out crypto transactions and other crypto-related services under the given set of guidelines.

CBN Banned Crypto in 2021

In February 2021, the CBN (Central Bank of Nigeria) made rules that prohibited banks and financial places from working with virtual assets service providers. CBN banned crypto due to associated risks like money laundering and helping fund terrorism, plus no rules to protect people using them.

Also Read: Nigeria-based Crypto Exchange Digital Token Launch Goes through Scrutiny

Now, the CBN made new rules for financial places in Nigeria about working with these crypto providers. They said these rules are more important than the ones they made in 2017 and 2021. But they also said banks in Nigeria can’t have, trade, or use cryptocurrencies. But now, CBN has listed the banned an allowed the crypto transactions under the given guidelines.

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