Nigeria's Central Bank has lifted its two-year ban on cryptocurrency transactions, signaling a positive turn towards digital assets. The move, however, comes with a twist as stringent Know Your Customer (KYC) and anti-money laundering checks are introduced to ensure transparency and security.The Central Bank of Nigeria (CBN) initially imposed the ban in 2021, citing concerns about money laundering and terrorism financing. Now, with the reversal of this ban, the regulatory body aims to foster a more secure environment for crypto transactions. The newly issued guidelines mandate financial institutions to adhere to strict customer checks, a move welcomed by industry insiders.Buchi Okoro, CEO and co-founder of Quidax, emphasized the positive impact of the new measures, stating, "Things are going to be more transparent. People are going to gravitate towards licensed platforms, and very importantly, we would have fewer cases of customers losing money."According to the guidelines released, banks must obtain the bank verification number (BVN) of all directors and owners of crypto businesses. Additionally, cryptocurrency companies are required to secure a license from the Securities Exchange Commission (SEC), aligning with global standards for regulation. The SEC's rules, introduced in May 2022, stipulate that virtual assets service providers (VASPs), including crypto exchanges, must have a minimum capital of ₦500 million ($553,000) and be registered with the Corporate Affairs Commission (CAC)."The guidelines are not perfect, but there are some things that have to be in place to bring much-needed confidence to the industry," commented Okoro, acknowledging the necessity of these regulatory steps.Notably, crypto companies seeking to issue tokens must submit a white paper to the SEC and await a 30-day review period before releasing tokens in Nigeria. While the guidelines prohibit banks from holding, trading, and transacting in virtual currencies directly, experts argue that such measures are essential to safeguard customer funds, given the volatility of crypto assets.The CBN's move reflects an effort to align with global standards for regulating cryptocurrency use in the country. Despite some imperfections, the guidelines aim to strike a balance between fostering innovation and protecting consumers, marking a pivotal moment in Nigeria's evolving crypto landscape. As the industry adapts to these changes, the newfound clarity and security measures are likely to attract more participants and instill confidence in the growing crypto community.#NigeriaAcceptsCrypto #proSEED #Crypto2024