© Reuters.
ABUJA – In a significant policy change, the Central Bank of Nigeria (CBN) has reversed its stance on cryptocurrency transactions, now allowing virtual asset service providers (VASPs) to open accounts with local banks . The move marks Nigeria’s strategic effort to embrace the thriving digital currency sector while mitigating associated risks.
The CBN’s decision aligns with international Financial Action Task Force (FATF) guidelines, signaling the country’s commitment to global financial standards. Under Section 30 of the Anti-Money Laundering Act 2022, VASPs are officially recognized as legitimate financial institutions, paving the way for regulated and safer cryptocurrency activities within the system Nigerian financier.
Additionally, the new regulations require senior management approval for the opening of designated accounts and mandate compliance with strict documentation practices, including proof of SEC licensing. This adds an extra layer of security and regulation, ensuring that all operations are well documented and overseen by high-ranking figures.
While Nigerian banks still cannot hold or trade cryptocurrencies themselves, they are now allowed to provide transactional support to VASPs. Additionally, they can offer settlement services and serve as channels for foreign exchange flows associated with virtual assets.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.