The
Central
Bank
of
Nigeria
reversed
its
prohibition
on
local
banks
and
financial
institutions
serving
crypto
firms
in
a
move
that
is
likely
to
spur
the
use
of
cryptocurrencies
in
one
of
the
world’s
fastest
adopters
of
digital
assets.
The
decision,
announced
last
week,
rescinds
a
2021
directive
against
institutions
facilitating
cryptocurrency
transactions.
At
the
time,
the
central
bank
was
forced
to
clarify
that
it
was
not
prohibiting
crypto
trading
in
the
country.
However,
adoption
continued
with
users
switching
to
peer-to-peer
trading.
Lifting
restrictions
on
crypto
exchanges
and
other
service
providers
from
opening
bank
accounts
could
boost
adoption,
with
high-profile
players
like
pan-African
exchange
Yellow
Card
saying
it
will
seek
a
crypto
license
in
the
country
under
frameworks
introduced
in
May
this
year.
“With
the
new
policy
fostering
a
regulated
environment,
Yellow
Card
anticipates
a
surge
in
user
adoption
and
engagement
in
the
coming
months,”
Lasbery
Oludimu,
the
company’s
chief
data
protection
officer,
told
local
news
outlet
Nairametrics
on
Wednesday.
“The
clarity
provided
by
the
regulatory
framework
instills
trust
and
confidence
among
users,
attracting
more
individuals
and
businesses
into
the
crypto
space.”
Central
bank
circular
reference
FPR/DIR/PUB/CIR/002/003,
yet
to
be
published
on
the
CBN
website,
says
the
global
trend
of
regulating
crypto
prompted
the
change.
International
standard
setters
like
the
Financial
Stability
Board
(FSB)
and
the
International
Monetary
Fund
(IMF)
have
recommended
supervision
of
the
industry
rather
than
blanket
bans.
A
Nigerian
crypto
personality
on
X
called
the
CBN
circular
a
“Christmas
present.”
