CBN allows bank accounts, services for cryptocurrency dealers

The Central Bank of Nigeria, CBN has lifted ban on transaction in cryptocurrencies, saying banks and other financial institutions can now provide services to cryptocurrency exchanges and dealers also known as Virtual Assets Providers, VAPs.

Accordingly, the CBN said financial institutions are now permitted to open accounts for VAPs, provide designated settlement accounts and settlement services, act as channels for foreign exchy flows and trade and render any other activity that may be permitted by the CBN from time to time.

The CBN however said that bank accounts opened for VAPs cannot be used for cash withdrawal and third-party cheque.

However, the CBN excluded banks from holding or transacting in cryptocurrencies.

Director, Financial Policy and Regulation, CBN, Haruna Mustafa announced the new directive in a circular to banks and other financial institutions, titled, Guidelines on Operations of Bank Account for Virtual Assets Providers, VAPs)

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