Nigerian CBN left crypto ban

Good news for our Nigerian crypto community
Nearly three years after the Central Bank of Nigeria (CBN) restricted banks from operating accounts for cryptocurrency service providers and users, it has lifted the ban whilst still restricting financial institutions from directly transacting virtual assets.

In a circular issued by the CBN Director, Financial Policy and Regulation department, Haruna Mustafa, the apex bank said it has issued a guideline to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with Virtual Assets Service Providers (VASPs) in Nigeria.

Recall that the CBN in February 2021 had 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.
Following this development, the Financial Action Task Force (FATF) in 2018 also updated tts Recommendation 15 to require VASPs to be regulated to prevent misuse of virtual assets for MLU/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.