The Central Bank of Nigeria (CBN) has reversed its previous ban on cryptocurrency transactions, issuing a new circular dated December 22, 2023.
The directive, titled ‘Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS),’ acknowledges the global need for cryptocurrency regulation.
The CBN cites the Financial Action Task Force’s (FATF) 2018 update, recognizing the importance of regulating virtual asset service providers (VASPs) to prevent misuse for money laundering and terrorism financing.
The apex bank emphasizes compliance with the new guidelines, superseding its prior restrictions on crypto activities and clarifying that banks must not engage in holding, trading, or transacting in virtual currencies.
