The Central Bank of Nigeria, CBN has lifted ban on transaction in cryptocurrencies, saying banks and other financial institutions can now provide services to cryptocurrency exchanges and dealers also know as Virtual Assets Providers, VAPs.
Accordingly the CBN said financial institutions are now permitted to open accounts for VAPs, provide designated settlement accounts and settlement services, act as channels for foreign exchange flows and trade and render any other activity that may be permitted by the CBN from time to time.
The CBN however said that bank accounts opened for VAPs cannot be used for cash withdrawal and third party cheque.
However the CBN excluded banks from holding or transacting in cryptocurrencies.
Director, Financial Policy and Regulation, CBN, Haruna Mustafa announced the new directive in a circular to banks and other financial institutions, titled, Guidelines on Operations of Bank Account for Virtual Assets Providers, VAPs)
The Circular stated:”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 stili prohibited from holding, trading and/or transacting in virtual currencies on their own account.
https://www.vanguardngr.com/2023/12/cbn-lifts-ban-on-cryptocurrencies/

I believe this is good news for young Nigerians who genuinely trade in cryptocurrencies or use it for their legitimate business.
I have experienced the bad side of transacting using Nigerian banks for cryptocurrencies and I came off very scared.
I remember something last year when I tried to buy Bitcoin and I asked my brother to help me send some money to a seller.
He innocently put Bitcoin in the narrative,and that was the beginning of my problem.
It was one of the most traumatic period of my life,the bank blocked the account and refused to release it.
When I got tired of waiting for my funds,I had to negotiate with the seller for a little % of my funds cos the seller told me he didn't know when the bank will release my funds.
I totally believe the era of cryptocurrencies behind annoymous is over,these days most crypto exchanges ask you to submit your BVN,NIN and all your identity,it's therefore very easy to trace these coins these days.
Finally I need to address an issue,I notice many people refer to me as freestuff, I'm not freestuff and will never be that person.
We have common traits we share as individuals,which is our love and development of Our great country,I believe loving,and Praying for our Great country Nigeria shouldn't be offensive to anyone.
This is the country of my birth,I hope everyone joins us in Wishing well for our country,not everyone will leave this country,so let us stop with the insults for those of us who keep believing in the greatness of this country.
God bless Nigeria

No be only. As if there was a ban in the first place.

where are my fellow cryptonians
tell them we don dey do business for naija no be today

Brendaniel:


Supporting a thief like Tinubu means you are not wishing your country well....

Can you defend this irresponsible statement in case DSS invites you? I advise you to be careful of what you say or write in public space(s). Tinubu is the president as at today and supreme court has confered legitimacy on his government. Be warned!

Brendaniel:


Supporting a thief like Tinubu means you are not wishing your country well....

In the name of free Data you may put yourself in trouble . I hope you know we are no more in era of politicking when you free to dish out insult as many as you want? A little words for the wise.

kunle4toyeyaho:
Can you defend this irresponsible statement in case DSS invites you? I advise you to be careful of what you say or write in public space(s). Tinubu is the president as at today and supreme court has confered legitimacy on his government. Be warned!

Asiwaju Bola Ahmed Tinubu is a thief, drug baron, money launderer, a deceit, a wicked and heartless human being with his wife Remi Tinubu, crooked and wicked human beings...

Please call the DSS

adekolaelect:
In the name of free Data you may put yourself in trouble . I hope you know we are no more in era of politicking when you free to dish out insult as many as you want? A little words for the wise.

Asiwaju Bola Ahmed Tinubu is a thief, drug baron, money launderer, a deceit, a wicked and heartless human being with his wife Remi Tinubu, crooked and wicked human beings...

Please call the DSS

kunle4toyeyaho:
Can you defend this irresponsible statement in case DSS invites you? I advise you to be careful of what you say or write in public space(s). Tinubu is the president as at today and supreme court has confered legitimacy on his government. Be warned!

Only parading himself as the president as stamped by some few criminals...!!

As long as sane Nigerians are concerned, he is never their president and would never be respected and seen as such...!!!
That's a fact you can take to the bank...dss or no dss its what everybody know...!!

He commands no single respect from majority of Nigerians...!!