Nigeria Lifts Bitcoin and Cryptocurrency Ban

Nigeria has lifted its ban on Bitcoin and cryptocurrency transactions, allowing banks and financial institutions to engage with crypto service providers once again. The ban was initially enforced in February 2021 due to concerns about money laundering and terrorism financing risks, but it 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 surged by 9% to $56.7 billion between July 2022 and June 2023. While the 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 to integrate digital assets into the financial system while ensuring security and compliance.