Central Bank of Nigeria ends ban on crypto trading

In a swift change of stance, the Central Bank of Nigeria, CBN, has lifted a ban earlier imposed on cryptocurrency and crypto assets in the country. The apex bank cited worldwide trends as evidence of the need to regulate such activity, according to a latest circular…

Nigeria’s central bank has lifted an embargo on cryptocurrency transactions, citing worldwide trends as evidence of the need to regulate such activity, according to the bank’s latest circular.

The Central Bank of Nigeria (CBN) restricted banks and financial institutions from engaging in or supporting transactions in crypto assets in February 2021, citing the concerns of money laundering and terrorism funding.

In a circular dated Dec. 22, the apex bank in the West African country said current trends globally have shown there is a need to regulate the activities of virtual asset service providers (VASPs), which include cryptocurrencies and crypto assets.

Despite the order, banks were still barred from trading, holding or transacting cryptocurrencies, the CBN said.

Nigeria’s crypto market is fast growing, especially among the young population and wealthy citizens.

According to a September analysis by New York-based blockchain research firm Chainalysis, the number of crypto transactions in Nigeria increased by 9% year on year to $56.7 billion between July 2022 and June 2023.