The Central Bank of Nigeria (CBN) has directed banks to disregard the initial ban on cryptocurrency which the apex bank announced two years ago.

Haruna Mustapha, CBN’s director of financial policy and regulation, disclosed this in a circular on Friday.

The apex bank said it is now providing guidelines and regulations for banks with regard to managing cryptocurrency in line with global trends to avoid its misuse, while urging banks to comply with the guidelines and regulations.

FPR/DIR/PUB/CIR/002/003

CIRCULAR TO ALL BANKS AND OTHER FINANCIAL INSTITUTIONS

GUIDELINES ON OPERATIONS OF BANK ACCOUNTS FOR VIRTUAL ASSETS SERVICE PROVIDERS (VASPs)

The CBN in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.

However, current trends globally have shown that there is need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPS to be regulated to prevent misuse of virtual assets for ML/TF/PF.

Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognizes VASPs as part of the definition of a financial institution. In addition, the Securities and Exchange Commission (SEC) in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPS to provide a regulatory framework for their operations in Nigeria.

In view of the foregoing, the CBN hereby issues this Guidelines to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria.

The Guidelines supersedes the CBN’s circulars referenced FPR/DIR/GEN/CIR/06/010 of January 12, 2017 and BSD/DIR/PUB/LAB/014/001 of February 5, 2021 on the subject. However, banks and other financial institutions are still prohibited from holding, trading and/or transacting in virtual currencies on their own account.

Accordingly, all banks and other financial institutions are hereby required to immediately comply with the provisions of the Guidelines.

HARUNA B. MUSTAFA

DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT

chisomkachy:


See full statement below:



https://gazettengr.com/just-in-cbn-directs-banks-to-disregard-initial-ban-on-cryptocurrency/?fbclid=IwAR3qZnaSoUYqBJ6yONgdRevFihw0MzhYT06FoU2CWDtx38-Ee4-KvYctR6s

Birdbyrde440:


The ETF will soon be approved, central banks are now jittery

Officer4:
what is etf

johnmartus:
Unfortunately niggar no dey get the bitcoin like before.

MrProlific95:
They have no option

FreeStuffsNG:
I will await confirmation from credible media platforms. It's very interesting now to note that the whole dummy being sold that crypto takes power from central banks is utter nonsense.

They are now all under Central banks and being regulated by the central banks, the rest , as they say, is now history. Central banks won again It is a financial mania and datsall. Check my signature for free stuffs!