CBN Slams Fresh Restriction on Cryptocurrency Transaction

CBN slams fresh restriction on Cryptocurrency transaction

The Central Bank of Nigeria (CBN) has introduced stringent guidelines governing cryptocurrency transactions, signaling a significant shift in its approach to virtual assets service providers.

As outlined on the CBN’s website, these guidelines specifically address the operation of cryptocurrency accounts, stressing their exclusive use for virtual/digital assets transactions and prohibiting any other form of usage.

In adherence to the guidelines, the CBN has imposed restrictions, disallowing cash withdrawals from cryptocurrency accounts and emphasizing the non-clearance of third-party cheques.

The bank’s stance aligns with global trends advocating for the regulation of virtual asset service providers, including cryptocurrencies and crypto assets. These regulations aim to channel the use of accounts opened under these guidelines solely for transactions involving virtual/digital assets.

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It’s imperative to note that withdrawals from these accounts are limited, permitting transactions solely related to virtual/digital assets. Withdrawals will be facilitated through methods such as manager’s cheques or transfers to designated accounts for virtual/digital assets transactions.

This move follows the CBN’s decision to lift the ban on cryptocurrency in December 2023, aligning Nigeria with other African nations like South Africa and Botswana in implementing regulatory measures for the cryptocurrency market. This step aims to mitigate the risks associated with fraud prevalent in the cryptocurrency sphere.

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