Nigeria’s Central Bank Releases Rules for Opening Cryptocurrency Accounts
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Nigeria’s top bank has expanded on its decision to lift a cryptocurrency ban on financial services providers, providing clear rules for overseeing future operations.
The Central Bank of Nigeria (CBN) has announced strict rules for banks, with regulators moving away from a blanket cryptocurrency ban to regulate virtual asset service providers, citing the need to align with global trends underpinned by blockchain technology and digital assets.
according to cubic boron nitride, operators such as cryptocurrency exchanges and digital asset brokers can only open bank accounts denominated in naira. Nigeria’s apex bank also said that cash withdrawals are prohibited and companies cannot clear third-party checks through their crypto accounts. Other withdrawal types will also be limited to two per quarter.
In December, Africa’s most populous country lifted its ban on cryptocurrency trading. This shift enables banks to provide services to virtual asset operators and opens the way for cryptocurrency companies to obtain business licenses.
Additionally, a consortium of local financial entities and blockchain companies is developing Nigeria’s first regulated stablecoin, cNGN. The digital currency may join the eNaira Alliance, a central bank digital currency issued by the CBN.
However, banks are still prohibited from holding cryptocurrencies or trading digital assets due to fraud and financial risk concerns, the CBN warned.
With this move, Nigeria joins other African countries in recognizing Bitcoin and cryptocurrencies as blockchain adoption is quickly becoming a reality across the continent.The so-called African giant ranks second among the top 20 in the Global Cryptocurrency Adoption Index chain analysis.
