However, these institutions are still prohibited from directly trading, holding, or transacting in cryptocurrencies. 22, banks and financial institutions are required to open designated accounts and provide settlement services for firms dealing in cryptocurrencies and crypto assets. In May last year, the SEC released regulations for virtual assets, signaling Nigeria’s intent to balance between an outright crypto ban and unregulated usage. The change in stance aligns with the Nigerian Securities and Exchange Commission’s efforts to establish a regulatory framework for digital assets. This move marks a departure from the bank’s February 2021 decision, which prohibited banks and financial institutions from engaging in crypto-related activities due to concerns over money laundering and terrorism financing.
The Central Bank of Nigeria has lifted its ban on cryptocurrency transactions, acknowledging the global trend towards regulating digital assets, according to a recent Reuters report.
