Nigeria’s leading crypto exchange, Yellow Card, has welcomed the Central Bank of Nigeria’s (CBN) decision to lift the ban on crypto transactions and issue new guidelines for digital assets. The exchange predicts that this will boost the adoption and innovation of digital currencies in the country and beyond.
The CBN banned banks and other financial institutions from servicing crypto-related accounts in 2021, citing concerns over money laundering, terrorism financing, and exchange rate stability. This has forced many crypto users and businesses to resort to peer-to-peer platforms, which are less regulated and more vulnerable to fraud and scams.
However, on Dec. 22, 2023, the CBN released a circular that allowed virtual assets service providers (VASPs), which include crypto exchanges and custodians, to open bank accounts and operate within the existing regulatory framework. The circular also outlined the requirements and obligations of VASPs, such as registration, reporting, compliance, and risk management.
Crypto Industry Applauds CBN’s Policy Reversal
Yellow Card, which claims to have over 1.7 million users across Africa, has expressed its support for the CBN’s new policy, saying that it will create a more conducive and legitimate environment for transactions in digital assets. Lasbery Oludimu, VP of legal, commercial, and product at Yellow Card, said:
This decision is a step in the right direction to foster innovation, as well as provide a conducive environment for legitimate businesses like Yellow Card to operate, thereby benefiting users, increasing the crypto adoption rate in Nigeria and the broader crypto ecosystem.
Oludimu added that lifting the ban will enable more integration and cooperation between the traditional financial system and the virtual assets, as banks and other institutions could offer crypto-related services and products. She said this will increase the competition and efficiency in the market and open up new opportunities for collaboration and innovation.
According to Oludimu, Yellow Card expects to see a surge in the use of digital assets in Nigeria in 2024, as more people and businesses will be attracted to the benefits and potential of digital assets. She said Yellow Card plans to leverage the new regulatory clarity and framework to grow its user base, seek strategic partnerships, and introduce new solutions to advance the Nigerian virtual market.
Related Reading | Bankman-Fried Escapes Further Charges After Fraud Conviction
