Nigeria Lifting Ban on Bank Accounts for Crypto Firms Could Lead to Usage ‘Surge’

Nigeria Lifting Ban on Bank Accounts for Crypto Firms Could Lead to Usage 'Surge'

The Central Bank of Nigeria has reversed its prohibition on local banks and financial institutions serving crypto firms in a move that is likely to spur the use of cryptocurrencies in one of the world’s fastest adopters of digital assets.

The decision, announced last week, rescinds a 2021 directive against institutions facilitating cryptocurrency transactions.

At the time, the central bank was forced to clarify that it was not prohibiting crypto trading in the country.

This reversal is likely to open up the floodgates for institutional investment in the crypto space, and could even lead to the launch of new cryptocurrencies in Nigeria.

Lifting restrictions on crypto exchanges and other service providers from opening bank accounts could boost adoption, with high-profile players like pan-African exchange Yellow Card saying it will seek a crypto license in the country under frameworks introduced in May this year.

“We are very excited about the new policy,” said Yellow Card CEO Nii Quaynor. “It will create a more conducive environment for crypto businesses and help drive adoption and usage of cryptocurrencies in the country.”

Lasbery Oludimu, the company’s chief data protection officer, told local news outlet Nairametrics on Wednesday that the clarity provided by the regulatory framework instills trust and confidence among users, attracting more individuals and businesses into the crypto space.

Oludimu added that the company is committed to working with the Nigerian government to create an enabling environment for the growth of the crypto industry.

The global trend of regulating cryptocurrencies has prompted the Central Bank of Nigeria (CBN) to change its stance on the industry.

International standard setters like the Financial Stability Board (FSB) and the International Monetary Fund (IMF) have recommended supervision of the industry rather than blanket bans.

Opening up bank accounts for crypto exchanges and other service providers could boost adoption, with high-profile players like pan-African exchange Yellow Card saying it will seek a crypto license in the country under frameworks introduced in May this year.

“We’re excited to see the positive impact the new policy will have on user adoption and engagement,” said Lasbery Oludimu, Yellow Card’s chief data protection officer.

“The clarity provided by the regulatory framework will help build trust and confidence among users, attracting more individuals and businesses into the crypto space.”

The global trend of regulating crypto has prompted the Central Bank of Nigeria (CBN) to change its stance on crypto.

International standard setters like the Financial Stability Board (FSB) and the International Monetary Fund (IMF) have recommended supervision of the industry rather than blanket bans.

A Nigerian crypto personality on X called the CBN circular a “Christmas present.”

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