Nigeria ends years-long restrictions on #crypto transactions

In a major shift from its prior position, the Central Bank of Nigeria (CBN) has lifted the prohibition on cryptocurrency transactions in the nation.

On December 22, the modification was made public through a circular. This enables banks and other financial institutions in Nigeria to carry on with their business dealings with bitcoin service providers.

The original prohibition, which went into effect in February 2021, was mainly implemented because to worries about the hazards of money laundering and terrorism financing connected to cryptocurrency holdings.

New guidelines for crypto-

Financial institutions may now open accounts for companies that trade in virtual or digital assets under the new regulations, but these accounts must be made expressly for that reason.
When handling accounts for companies involved in the #cryptocurrency space, banks and other financial institutions are required to adhere to the policies specified in the CBN's instructions.

Virtual Asset Service Providers (#VASPs ) operating in the cryptocurrency space must obtain a licence from the Nigerian Securities and Exchange Commission in the interim.

Banks and other financial institutions are still not allowed to trade, hold, or conduct cryptocurrency transactions on their own accounts, even though they can help VASPs with their transactions.

Given that the majority of Nigeria's population is young, tech-savvy, and has demonstrated a strong interest in cryptocurrencies, the removal of the prohibition is anticipated to have a substantial impact on the financial landscape of the nation.

According to a report by Chainalysis, the volume of crypto transactions in Nigeria grew by 9% year-over-year to $56.7 billion between July 2022 and June 2023.

While the lifting of the ban opens up opportunities, it also presents challenges in ensuring compliance with international standards for preventing illegal activities. It underscores the need for a balanced approach that encourages innovation while safeguarding against risks.

Important Update: Starting from September 1, UK Virtual Asset Service Providers (VASPs) must adhere to FATF's Travel Rule.

#WebGTR #UK #VASPs #FATFs #TravelRule

If you're a Nigerian and you're thinking that the current policy relaxation for banks to service #VASPs and their "virtual" assets transactions is for "your" own good, then think again. This is how they initiate the total control of your life. The govt has failed in every aspects of national development, has taken away all the rails and guarantees of liberty for the citizens and fairplay by the governing, basic aspects of lives that requires no struggles or tussles to understand their basic operational principles have been messed up and the president even said he can't help. Now, from no where, with no former knowledge or record of dealing with digital economy and blockchain technology, the govt just approved its operations, and begins to act like pros in the most nascent industry the world has ever seen. Even the US elite leaders in Congress and Senate invite counsels from top experts to testify, elaborate for them, explain the implications and profer guidelines that they can rely upon to extract valuable insights in forming regulatory frameworks for their national development. Who did Nigeria invite? Who advised or is advising the govt on their current path? What is the REAL motivation for their current course of action? To be fair, precise and vocally unbiased, there is a gleamer of hope as many would love to see this as a positive thing bringing hope and brighter prospects for the poor masses. BUT sadly enough, this is never the real truth. In 2008, the pioneer visionary behind #Bitcoin did not say this asset will fit right in with the authorities and so it should be instructive for those who has ears to be wary of anything that gives more powers and sweeping control to the government. Currently we have the worst and most proud and self-styled tyrant in the hemp of affairs — the worst we've seen in ages since the arrival of American Democracy. Washington wants sweeping control over crypto. Nations under the sweeping control of Washington like 🇳🇬, must comply to this or face the wrath therein. Oh Nigerians, be careful. There is more than you know.

Nigeria's Central Bank Unlocks Crypto Potential. 🇳🇬🪙

Central Bank of Nigeria (CBN) has officially lifted its ban on cryptocurrency transactions, reshaping the nation's financial landscape. Haruna Mustafa, Director of the Financial Policy and Regulation Department, announced this transformative decision, highlighting Nigeria's commitment to adapting to global financial trends.

Regulation of VASPs:

The CBN aligns with global trends by emphasizing the regulation of Virtual Assets Service Providers (VASPs), including cryptocurrencies. This move addresses concerns like money laundering and terrorism financing, in accordance with Financial Action Task Force (FATF) recommendations.

New Guidelines for Banking Activities:

Fresh guidelines have been issued to regulate banking activities related to VASPs. Section 30 of the Money Laundering Act of 2022 officially recognizes VASPs as part of the financial institution definition. Immediate compliance is stressed for all banks and financial institutions in Nigeria.

Prohibition on Direct Crypto Transactions:

While lifting the ban enables banking transactions with VASPs, the CBN prohibits banks from holding, trading, or transacting virtual currencies on their own accounts. This nuanced approach showcases Nigeria's openness to the digital currency wave while exercising caution to mitigate potential risks.

The CBN's groundbreaking policy shift marks a transformative chapter in Nigeria's financial history. It signifies the country's readiness to embrace evolving global financial trends while vigilantly managing potential risks associated with the crypto space. Nigeria has positioned itself at the forefront of financial innovation, signaling a promising future for its digital economy.

#VASPs #FATF #Nigeria #HarunaMustafa #cbn

📜 This year, around 1000 companies in the #EU obtained licenses to activate as #VASPs

📊 The Czech Republic emerged as the absolute leader in the number of registered #CryptoCompanies

Poland secured the second position in the ranking, while Lithuania claimed the third spot 👀