Nearly two years after imposing a blanket ban on banks’ involvement in digital currency businesses, the Central Bank of Nigeria (CBN) has now lifted restrictions on Nigerian banks facilitating cryptocurrency transactions.
In a Dec. 22 notice to banks, the CBN recognized that the growing global demand and adoption of cryptocurrencies makes it unreasonable to maintain the strict restrictions imposed on financial institutions in 2021.
The guidelines are intended to set minimum standards and requirements for virtual asset service providers (VASPs) in Nigeria to establish banking relationships and open accounts.
Furthermore, the guidelines aim to ensure that robust risk management practices are implemented within the banking industry with respect to the activities of licensed VASPs.
However, the statement stressed that financial institutions are still prohibited from holding, trading or using their own accounts for cryptocurrencies.
In February 2021, Cointelegraph reported that the Central Bank of Nigeria banned all regulated financial institutions from providing services to cryptocurrency exchanges in the country.
Meanwhile, in recent news, the local blockchain industry has called on the Nigerian federal government to implement regulations to facilitate widespread integration of the approved blockchain policy in the country.
Chairman of the Blockchain Stakeholders Association of Nigeria (SiBAN), Obinna Iwuno, recently stressed the need for a regulatory framework to accelerate the integration of blockchain technology into all sectors of the economy.
Iwuno told Cointelegraph that Nigeria is well-positioned to implement blockchain technology:
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