- Central Bank of Nigeria reversed its ban on banks serving crypto firms, opening the door to greater crypto adoption in the country
- The ban was imposed in 2021, though crypto trading continued through peer-to-peer platforms. Lifting it allows exchanges to offer services.
- The shift from banning to regulating crypto is in line with guidance from international financial bodies and is applauded for boosting adoption through proper channels.
The Central Bank of Nigeria (CBN) recently reversed its ban on banks serving crypto firms, a move that is expected to boost crypto adoption in the country. Nigeria has been one of the fastest adopters of digital assets globally.
Lifting the Ban
In 2021, the CBN prohibited local banks from facilitating cryptocurrency transactions, though it clarified this was not an outright crypto trading ban. Adoption continued through peer-to-peer trading.
Last week’s decision rescinds the 2021 directive. This opens the door for crypto exchanges and service providers to offer services in the country.
Impact on Adoption
Pan-African exchange Yellow Card says it will now seek a crypto license in Nigeria under the new regulatory framework introduced earlier this year.
“With the new policy fostering a regulated environment, Yellow Card anticipates a surge in user adoption and engagement in the coming months,” said Lasbery Oludimu, Yellow Card’s Chief Data Protection Officer.
Regulation Over Ban
According to the unpublished CBN circular, the shift is prompted by the global trend toward regulating rather than banning crypto. The Financial Stability Board and International Monetary Fund have advised regulation over bans.
A Nigerian crypto personality called the circular a “Christmas present.”
CBN’s Move Applauded
The CBN’s policy reversal has been applauded by the crypto community. It is expected to boost adoption and allow users to access services through proper channels.
With clear guidelines and compliance requirements in place, Nigerians can explore crypto in a regulated environment. The policy change reflects the country’s openness to emerging technologies.
