Nigeria Lifts Bitcoin and Cryptocurrency Ban

The Central Bank of Nigeria has reversed its decision to ban cryptocurrency transactions, allowing banks and financial institutions to engage with crypto service providers once again.

The ban, which was implemented in February 2021 due to concerns about money laundering and terrorism financing, has now been lifted.

Under the new guidelines, financial entities can create specific accounts for businesses dealing in virtual assets. However, they are still prohibited from trading cryptocurrencies using their own accounts.

This decision is expected to have a significant impact on Nigeria’s financial landscape, particularly among the country’s tech-savvy youth who are interested in cryptocurrencies.

According to Chainalysis, crypto transactions in Nigeria increased by 9% to $56.7 billion between July 2022 and June 2023.

While this lifting of the ban presents opportunities, compliance with global standards to prevent illicit activities remains a challenge.

Nigeria’s move aligns with global trends, recognizing the need for comprehensive regulatory frameworks for cryptocurrencies. These steps aim to integrate digital assets into the financial system while ensuring security and compliance.