Cryptocurrency transactions are no longer prohibited by CBN after two-year ban

The Nigerian banking system will now allow cryptocurrency transactions after the Central Bank of Nigeria (CBN) lifted the ban that was imposed two years ago.

In a circular issued by Haruna Mustapha, the Director of Financial Policy and Regulation, the CBN stated that it will now provide regulations for financial institutions to ensure the proper management of cryptocurrency and prevent misuse.

The previous ban was implemented due to concerns over money laundering, terrorism financing, and the lack of regulation and consumer protection measures.

The CBN’s decision aligns with global trends and the updated recommendations of the Financial Action Task Force (FATF) regarding the regulation of Virtual Assets Service Providers (VASPs).

However, it is important to note that banks and other financial institutions are still prohibited from holding, trading, or transacting in cryptocurrencies on their accounts.