The Central Financial institution of Nigeria (CBN) has lifted the ban it imposed two years in the past on cryptocurrency transactions within the Nigerian banking system.
The CBN introduced the reversal of the coverage in a round by Haruna Mustapha, its Director, Monetary Coverage and Regulation.
Mustapha stated that the apex financial institution would now present rules for monetary establishments on the way to handle cryptocurrency to keep away from misuse.
The CBN issued a round in February 2021, proscribing banks and different monetary establishments from working accounts for cryptocurrency service suppliers.
The then CBN Governor, Godwin Emefiele, had introduced that the restriction was needed in view of the cash laundering and terrorism financing dangers posed by cryptocurrency.
Emefiele additionally stated that the vulnerability inherent in cryptocurrency operations, in addition to the absence of regulation and client safety measures have been additionally liable for the coverage.
In response to Mustapha, present world developments have proven that there’s a want to control the actions of Digital Property Service Suppliers (VASPs) which embrace cryptocurrencies and crypto belongings.
“Following this growth, the Monetary Motion Job Power (FATF) additionally up to date its suggestion to require VASPs to be regulated, to stop misuse of digital belongings.
“In view of the foregoing, the CBN hereby points these tips to offer steering to monetary establishments underneath its regulatory purview in respect of their relationship with VASPs in Nigeria.
“The tips supersedes the CBN round of Feb. 5, 2021 on the topic,” the director stated.
He, nevertheless, warned that banks and different monetary establishments have been nonetheless prohibited from holding, buying and selling or transacting in cryptocurrencies on their very own account.