April 19, 2024
Regulatory Shift in Nigeria Spurs Crypto Industry Growth
Latest Cryptocurrency News

Nigeria’s Central Bank Revokes Crypto Service Ban, Fueling Adoption

Nigeria’s Central Bank has reversed its previous ban on local banks and financial institutions catering to crypto firms, marking a significant shift likely to drive cryptocurrency usage in one of the world’s quickest adopters of digital assets. The decision announced recently overturned a directive from 2021 that prohibited institutions from facilitating cryptocurrency transactions. Although the central bank clarified it wasn’t forbidding crypto trading in the country at that time, users pivoted to peer-to-peer trading, driving continued adoption.

Now, by lifting restrictions on crypto exchanges and other service providers seeking bank accounts, there’s potential for a surge in adoption. Major players like pan-African exchange Yellow Card have expressed plans to pursue a crypto license in the country under frameworks introduced earlier in the year.

Yellow Card’s chief data protection officer, Lasbery Oludimu, expressed optimism about increased user adoption and engagement shortly due to the newly established regulatory environment. According to Oludimu, the clarified regulatory framework builds trust and confidence among users, drawing more individuals and businesses into the crypto space.

The decision stems from a yet-to-be-published central bank circular, FPR/DIR/PUB/CIR/002/003, referencing the global trend of regulating crypto. International bodies like the Financial Stability Board (FSB) and the International Monetary Fund (IMF) have recommended supervisory approaches over blanket bans, influencing this shift.

Image by freepik

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