The Central Bank of Nigeria (CBN) has reversed its ban on crypto assets in the country.
The reversal order was contained in a circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003.
CBN’s Director of Financial Policy and Regulation Department, Haruna Mustafa asked banks to disregard its previous ban on crypto transactions.
The circular was titled ‘Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS).’
In it, the CBN highlighted the global need for crypto regulation.
It read:
“In addition, the Securities and Exchange Commission in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPs to provide a regulatory framework for their operations in Nigeria.
“In view of the foregoing, the CBN hereby issues this guideline to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria.”
The apex bank clarified that the above replaced the old guidelines referenced FPR/DIR/GEN/CIR/06/010 of January 12, 2017, and BSD/DIR/PUB/LAB/014/001 of February 5, 2021.
However, it stressed that banks and other financial institutions are still prohibited from holding, trading, and/or transacting in virtual currencies on their accounts.
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