The Central Bank of Nigeria relaxes regulations on banks promoting cryptocurrency transactions

ChainCatcher news, according to Cointelegraph, the Central Bank of Nigeria (CBN) has lifted restrictions on banks facilitating cryptocurrency transactions nearly two years after a comprehensive ban on banks handling digital currencies.

In a notice sent to banks on December 22, the CBN acknowledged that the growing global demand and adoption of cryptocurrencies made it unreasonable to maintain strict restrictions on financial institutions imposed in 2021. The guidelines aim to establish minimum standards and requirements for banking relationships and account openings for Virtual Asset Service Providers (VASP) in Nigeria, and to ensure robust risk management practices for licensed VASP activities within the banking sector.

However, the statement emphasized that financial institutions are still prohibited from holding, trading, or using their own accounts for cryptocurrency transactions. In February 2021, the Central Bank of Nigeria banned all regulated financial institutions from providing services to cryptocurrency exchanges in the country.