still prohibits banks from engaging in cryptocurrency transactions.

977Iti

The Central Bank of Nigeria has lifted some restrictions on cryptocurrency service providers but still prohibits banks from engaging in cryptocurrency transactions.

Golden Finance reports that the Central Bank of Nigeria (CBN) has lifted restrictions on Virtual Asset Service Providers (VASPs) opening bank accounts in the country. The new policy overturns a CBN directive from February 2021, which urged banks to immediately close accounts related to digital asset activities, although it appears not to have overturned the country's ban on banks engaging in cryptocurrency transactions or holding digital assets themselves.

Furthermore, any VASP in the country must be regulated by the Nigerian SEC before being allowed to operate and must deposit at least 500 million Naira (approximately $550,000) in a bank account to obtain a license. The report suggests that this could impact smaller-scale participants in the market.

Kamal531

This prohibition is quite reasonable.

Niti998

If the channel between banks and the cryptocurrency sphere is not opened up, it doesn't make much sense, right?

Ritu13

That could become a feasible way for transactions.