Nigerian central bank lifts ban on cryptocurrency trading

The Central Bank of Nigeria (CBN) has lifted the ban on cryptocurrency trading and said the market should be regulated, Reuters reports.

The new circular contains rules for banks and financial institutions on serving cryptocurrency companies, including allowing them to open accounts and provide settlement services.

Providers of virtual asset services, in turn, must obtain a license from the central bank.

At the same time, for banks themselves the ban on trading, holding and dealing in cryptocurrencies remains in effect since February 2021.

The CBN cites money-laundering and terrorism financing risks.

Earlier in 2022, media reported that the Nigerian government planned to introduce a bill to legalise the use of Bitcoin and other digital assets.

In May, the local SEC announced plans to allow asset-backed tokens. As a pilot project, the possibility of listing such tokens on licensed platforms was envisaged.