The country overturned a ban on crypto trading implemented in 2021 while easing the crypto trading rules for banks in a step to regulate the sector effectively.
In the days ahead, crypto asset providers in Nigeria are in for an improving scenario. The Central Bank of Nigeria recently overturned a ban on crypto trading. The ease in the crypto trading rules could be a big boost for adoption in the sector. The new order also mentioned working for banks and other financial institutions in the crypto trading sector.
Crypto asset service providers would now have to obtain licenses for operations in the country. The Central Bank of Nigeria noted the various developments in the crypto industry worldwide. With growing awareness and adoption, the central bank said it was necessary to regulate them. The earlier order had banned banks from taking part in crypto transactions.
The Central Bank of Nigeria further said, “From the commencement of these Regulations, Fl shall not open or permit the operation of any account by any person or entity to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the requirement of these guidelines.” FI refers to ‘financial institutions’ in this case.
Nigeria, as a country, has been one of the biggest adopters of crypto in recent times. Various factors, like government initiatives and a younger population, could be responsible for the optimistic numbers. The government also approved a National Blockchain Policy for Nigeria in 2023. All such moves could have together led to the latest government order.
Moreover, a central bank digital currency (CBDC) called the eNaira is prominent in the country. The government has made several attempts to promote the CBDC and partnered with private firms.
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