The Central Bank of Nigeria recently lifted the ban on local banks and financial institutions providing services to cryptocurrency companies.
The decision, announced last week, overturns 2021 guidelines limiting institutions from facilitating cryptocurrency trading. At the time, the Central Bank of Nigeria (CBN) said it had not banned cryptocurrency trading, but users had switched to peer-to-peer trading.
This reversal is expected to boost cryptocurrency adoption in Nigeria, one of the fastest adopters of digital assets in the world. This move will allow cryptocurrency exchanges and service providers to open bank accounts, potentially increasing adoption. Yellow Card, a prominent pan-African exchange, plans to pursue a cryptocurrency license in Nigeria under a new regulatory framework introduced in May.
Lasbery Oludimu, Yellow Card’s Chief Data Protection Officer, expects the new policy will create a regulated environment that instills trust and confidence and lead to a surge in user adoption. The CBN’s decision is in line with the global trend of cryptocurrency regulation advocated by international organizations such as the Financial Stability Board and the International Monetary Fund.
One Nigerian cryptocurrency personality expressed his enthusiasm over the CBN circular, calling it a “Christmas gift.”