Cash Withdrawal Prohibited: CBN Blocks Crypto Bank Accounts In Nigeria

Cash Withdrawal Prohibited: CBN Blocks Crypto Bank Accounts In Nigeria....KINDLY READ THE FULL STORY HERE▶

Cash withdrawals will be restricted from accounts specifically opened for virtual and digital asset transactions, as revealed by the Central Bank of Nigeria. According to the new ‘Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers,’ withdrawals from these accounts will only be possible through transfer or manager’s cheque. The account, governed by the bank’s guidelines, is designated exclusively for transactions involving virtual/digital assets….CONTINUE READING

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In a circular dated December, titled ‘Circular to all banks and other Financial Institutions guidelines on operations of bank accounts for Virtual Assets Service Providers,’ the Director of the Financial Policy and Regulation Department, Haruna Mustafa, announced a policy shift on crypto assets. The directive instructed banks to facilitate crypto transactions, reflecting a more open stance towards regulation compared to the previous restriction of crypto assets from the formal banking sector.

The guidelines, applicable to banks and financial institutions under the regulatory purview of the CBN, aim to set minimum standards for banking relationships and account openings for Virtual Assets Service Providers in Nigeria. The document permits financial institutions to engage in various activities, such as opening designated accounts, providing settlement services, acting as channels for FX flows and trade, and other activities authorized by the CBN.

The apex bank emphasized that financial institutions must adhere to these guidelines, stating that non-compliance may lead to sanctions, including the suspension of operating licenses, monetary penalties, and the prohibition from opening further designated accounts. The CBN emphasized the need for compliance to protect the financial system and customers from potential risks of uncertainty and fraud associated with virtual/digital assets.

The Lead Partner and Head of Blockchain and Virtual Assets Practice at Infusion Lawyers, Senator Ihenyen, expressed optimism about the regulators working together for consumer protection and investor safety. He stressed the importance of bringing digital assets into the mainstream, considering Nigeria’s prominent position in crypto adoption in Africa and the global market.

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