Business

CBN Relaxes Restrictions on Cryptocurrency Transactions

The Central Bank of Nigeria (CBN) has relaxed restrictions on transactions on crypt-currencies in the country.

The apex bank disclosed this in a circular dated December 22, 2023, signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa.

The document titled, ‘Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS),’ was addressed to the banks.

It noted that its decision was informed by current trends globally which showed the need for crypto-regulation.

“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 need to regulate the include providers (V/ASPs) which activities of virtual assets service cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPs to be regulated to prevent misuse of virtual assets for ML/TF/PF Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognizes VASPs as part of the definition of a financial institution.

“In addition, the Securities and Exchange Commission in May 2022, issued Rules on Issuance, Offering and Custody of Digital Assets and VASPs to provide a regulatory framework for their operations in Nigeria.

“In view of the foregoing, the CBN hereby issues this guideline to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria,“ it added.

The apex bank noted that the new guidelines supersede it’s previous one with reference number FPR/DIR/GEN/CIR/06/010 of January 12, 2017, and BSD/DIR/PUB/LAB/014/001 of February 5, 2021 on the subject.

Follow us on:

AriseNews

Recent Posts

German Consul General Boerner Calls for Greater Media Freedom in Nigeria

German Consul General Boerner stressed media freedom’s importance, noting Nigeria’s 112th press freedom rank and…

14 mins ago

FG Approves 2025-2026 MTEF, Targets N47.9trn For 2025

The Federal Executive Council approved Nigeria’s 2025-2027 Medium-Term Expenditure Framework, setting the federal budget at…

2 hours ago

Michael Oglegba: Benue State Is Embracing Mechanisation to Transform Agriculture

Benue State’s Commissioner for Finance has emphasised the need for farming to evolve from a…

2 hours ago

Government Should Conduct Forensic Audit Before Funding Power Sector; NNPC Probe Long Overdue, Says Abdullahi Shinkafi

Dr. Sani Abdullahi Shinkafi has called for overdue NNPC investigation and forensic audits in the…

5 hours ago

Sudan War Death Toll Significantly Much Higher Than Recorded, Researchers Say

Researchers have suggested Sudan’s war death toll may be significantly underreported, indicating a graver humanitarian…

6 hours ago

Bomb Blast Outside Brazil’s Supreme Court Sparks Security Fears Ahead of G20 Summit

A man detonated explosives near Brazil’s Supreme Court in a suspected suicide bombing, raising concerns…

6 hours ago