Central Bank of Nigeria reverses crypto ban

The Central Bank of Nigeria recently lifted its ban on local banks and financial institutions serving cryptocurrency firms.

The decision, announced last week, reverses a 2021 directive restricting institutions from facilitating cryptocurrency transactions. While the Central Bank of Nigeria (CBN) clarified back then that it did not ban crypto trading, users shifted towards peer-to-peer trading.

The reversal is expected to fuel the adoption of cryptocurrencies in Nigeria, one of the world’s fastest adopters of digital assets. The move allows crypto exchanges and service providers to open bank accounts, potentially boosting adoption. Yellow Card, a prominent pan-African exchange, plans to pursue a crypto license in Nigeria under the new regulatory framework introduced in May.

Lasbery Oludimu, Chief Data Protection Officer at Yellow Card, sees the new policy as creating a regulated environment that instills trust and confidence, anticipating a surge in user adoption. The CBN’s decision aligns with the global trend of regulating crypto, as advocated by international entities like the Financial Stability Board and the International Monetary Fund.

A Nigerian crypto personality expressed enthusiasm, calling the CBN circular a “Christmas present.”