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JUST IN: CBN lifts restriction on crypto transactions

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The Central Bank of Nigeria (CBN) has formally lifted the restriction on banks from facilitating crypto transactions.

This was revealed in a circular sent to banks and other financial institutions on Friday.

According to the apex bank, the ban was lifted because current global trends have proved that there is a need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrency and crypto assets.

Meanwhile, this directive is coming two years after crypto traders and companies urged the Central bank to lift the restriction.

It said Section 30 of the Money Laundering Act of 2022 now recognises crypto companies—which it calls virtual asset service providers (VASPs) — as financial companies.

It also made reference to the guidelines for crypto companies to operate in Nigeria released by the Nigerian Securities Exchange Commission (SEC) in 2022, as another reason why the restriction needed to be lifted.

However, while banks can now facilitate crypto transactions they are prohibited from trading, holding or transacting cryptocurrencies.

 

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