LAGOS, Nigeria, January 2, 2024 – The Central Bank of Nigeria (CBN) on Friday, December 23 announced that it had reversed its two-year ban on cryptocurrency trading, signaling the emergence of a regulated digital asset market in Africa’s most populous country.1
The move, effective immediately, holds the promise of financial inclusion, innovation, and economic opportunities but introduces challenges in establishing a robust regulatory framework.
The lifting of the ban does not signify a free-for-all approach, according to reports.
The CBN has unveiled a new regulatory framework designed to oversee crypto trading and ensure responsible practices. This framework is expected to encompass licensing requirements for crypto exchanges, know-your-customer (KYC) protocols, and anti-money laundering (AML) measures.
Proponents view the decision as a significant stride toward financial inclusion, offering Nigerians increased access to global financial markets and remittance channels.
Additionally, it holds the potential to stimulate innovation and attract investment in the tech sector, fostering the development of blockchain-based solutions across industries.
Multiple reports claimed that the crypto community in Nigeria had greeted the decision with cautious optimism, recognizing the need for responsible regulations while celebrating newfound opportunities.
Meanwhile, Nigerian cryptocurrency exchange Yellow Card views the CBN guidelines and the lifting of the ban on crypto transactions, as an opportunity for increased legitimacy and integration with the traditional financial system, potentially expanding its user base.
Yellow Card’s Chief Data Protection Officer and Vice President of Legal, Commercial, and Product, Lasbery Oludimu, noted in an interview with Cointelegraph that the shift from the previously dominant peer-to-peer market, especially during the ban, is expected with enhanced banking support. This change may stimulate competition and innovation within the Nigerian crypto space. 2
Predicting a surge in cryptocurrency usage in Nigeria in 2024, Oludimu highlighted that the CBN’s new guidelines would establish a more structured and regulated environment for crypto transactions, fostering collaboration with traditional financial institutions and encouraging greater integration and cooperation between traditional finance and digital assets.
- Crypto Trading: https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/[↩]
- https://cointelegraph.com/news/nigeria-s-yellow-card-anticipates-crypto-boom-post-cbn-ban-lift[↩]
