Nigeria Lifts Bitcoin and Cryptocurrency Ban
The Central Bank of Nigeria has reversed its ban on cryptocurrency transactions, allowing banks and financial institutions to resume engagement with crypto service providers.
The initial ban, implemented in February 2021 due to concerns about money laundering and terrorism financing risks, has 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.
Between July 2022 and June 2023, crypto transactions in Nigeria increased by 9% to $56.7 billion, according to Chainalysis.
While the lifting of the ban presents opportunities, complying 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.
Author
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to stay up to date with the most important trends and topics – stay ahead of the curve with CoinsPress.