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JUST IN: CBN Reverses Cryptocurrency Transaction Ban In Nigerian Banks
JUST IN: CBN Reverses Cryptocurrency Transaction Ban In Nigerian Banks....KINDLY READ THE FULL STORY HERE▶
The Central Bank of Nigeria (CBN) has officially revised its stance on the ban of cryptocurrency transactions in Nigeria. In a circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003, signed by the Director of Financial Policy and Regulation Department, Haruna Mustafa, the apex bank instructed banks to disregard its previous ban on crypto transactions.
The circular, titled ‘Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS),’ outlines the CBN’s recognition of the global need for cryptocurrency regulation.
The statement reads, “The CBN in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.”
“However, current trends globally have shown that there is a need to regulate Virtual Assets Service Providers (V/ASPs) whose activities involve virtual assets service cryptocurrencies and crypto assets.”
The circular emphasizes the importance of regulating VASPs, citing the Financial Action Task Force (FATF) recommendations, the Money Laundering (Prevention and Prohibition) Act of 2022, and the Securities and Exchange Commission’s rules issued in May 2022.
The CBN stated that the new guidelines supersede its previous directives and affirmed that banks and financial institutions remain prohibited from holding, trading, and/or transacting in virtual currencies on their own accounts. The circular urged all financial institutions to promptly comply with the updated guideline.
This reversal comes after the CBN’s circular dated February 5, 2021, which prohibited banks from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges. The earlier directive required banks to identify and close the accounts of individuals or entities involved in cryptocurrency transactions.
Source: Bushradiogist
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