Nigeria lifts restrictions on bank accounts for cryptocurrency companies: BusinessDay
The Central Bank of Nigeria (CBN) has told regulators to lift restrictions on cryptocurrency companies, known as virtual asset service providers (VASPs), opening bank accounts in the country, according to a report by Nigerian publication BusinessDay.
The new policy overturns the central bank’s February 2021 order that urged banks to immediately close accounts involving digital asset activity. However, the country’s ban, which prevents banks from trading in cryptocurrencies or holding digital assets themselves, does not appear to be overturned.
Additionally, all VASPs in the country must be regulated by the Nigerian SEC before operating in the country and must have at least 500 million Naira (approximately $550,000 USD) deposited in their bank account to obtain a license. According to the report, it affects smaller players in the market.
Pan-African exchange Yellow Card plans to apply for a license “immediately,” according to a Bloomberg report. The company’s lack of a Nigerian bank account was a major obstacle preventing it from applying for a license.
Nigeria, Africa’s most populous country, has seen a rise in cryptocurrency adoption in recent years, especially among its young, tech-savvy population. Domestic cryptocurrency traders often trade in a P2P manner due to regulatory restrictions.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
