The Central Financial institution of Nigeria has modified its stance on crypto belongings within the nation and requested banks to ignore its earlier ban on crypto transactions.
That is in response to a round dated December 22, 2023, with reference quantity FPR/DIR/PUB/CIR/002/003, and signed by the apex financial institution’s Director, Monetary Coverage and Regulation Division, Haruna Mustafa.
The round is titled ‘Round to all Banks and different Monetary Establishments Tips on Operations of Financial institution Accounts for Digital Property Service Suppliers (VASPS).’
The apex financial institution acknowledged that present traits globally have proven the necessity for crypto regulation.
It mentioned, “The CBN, in February 2021 issued a round proscribing banks and different monetary establishments from working accounts for cryptocurrency service suppliers in view of the cash laundering and terrorism financing (ML/TF) dangers and vulnerabilities inherent of their operations in addition to the absence of rules and shopper safety measures.
“Nevertheless, present traits globally have proven that there’s a want to manage the actions of digital belongings service suppliers (VASPs) which embody cryptocurrencies and crypto belongings. Following this growth, the Monetary Motion Job Power (FATF) in 2018 additionally up to date its Suggestion 15 to require VASPS to be regulated to forestall misuse of digital belongings for ML/TF/PF.
“Moreover, Part 30 of the Cash Laundering (Prevention and Prohibition) Act, 2022 recognises VASPs as a part of the definition of a monetary establishment.
“As well as, the Securities and Trade Fee in Could 2022 issued Guidelines on Issuance, Providing and Custody of Digital Property and VASPs to offer a regulatory framework for his or her operations in Nigeria.
“In view of the foregoing, the CBN hereby points this guideline to offer steering to monetary establishments underneath its regulatory purview in respect of their banking relationship with VASPs in Nigeria. “
The apex financial institution famous that this new guideline supersedes its previous ones referenced FPR/DIR/GEN/CIR/06/010 of January 12, 2017, and BSD/DIR/PUB/LAB/014/001 of February 5, 2021 on the topic.
It additionally affirmed that banks and different monetary establishments are nonetheless prohibited from holding, buying and selling and/or transacting in digital currencies on their very own account.
It added all banks and different monetary establishments are required to instantly adjust to its new guideline.
In its round with reference quantity BSD/DIR/PUB/LAB/014/001, dated February 5, 2021, the apex financial institution reminded banks that dealing in crypto currencies or facilitating funds for cryptocurrency exchanges was prohibited.
On the time, it requested banks to determine individuals or entities transacting in or working crypto foreign money exchanges inside their methods and be certain that their accounts have been closed.