#CRYPTO CBN LIFTED BAN ON CRYPTO IN NIGERIA
The Central Bank of Nigeria (CBN) has lifted the ban it imposed two years ago on cryptocurrency transactions in the Nigerian banking system.
The CBN announced the reversal of the policy in a circular by Haruna Mustapha, its director in charge of financial policy and regulation.
Mr Mustapha said the apex bank would now provide regulations for financial institutions on how to manage cryptocurrency to avoid misuse.
The News Agency of Nigeria (NAN) recalls that the CBN issued a circular in February 2021 restricting banks and other financial institutions from operating accounts for cryptocurrency service providers.
The then CBN Governor, Godwin Emefiele, had announced that the restriction was necessary in view of the money laundering and terrorism financing risks posed by cryptocurrency.
Mr Emefiele also said the vulnerability inherent in cryptocurrency operations, as well as the absence of regulation and consumer protection measures were also responsible for the policy.
According to Mr Mustapha, current global trends have shown that there is need to regulate the activities of Virtual Assets Service Providers (VASPs) which include cryptocurrencies and crypto assets.