Categories: News

CBN slams fresh restriction on Cryptocurrency transaction

The Central Bank of Nigeria has slammed restrictions on cryptocurrency transactions.

The apex bank disclosed this in recent guidelines on its website for operating cryptocurrency accounts known as Virtual Assets Service Providers.

According to the guidelines, cryptocurrency accounts shall be used for only virtual/digital assets and not for any other purpose.

Accordingly, CBN barred cash withdrawals from cryptocurrency and noted that no third-party cheques should be cleared.

“Current trends globally have shown a need to regulate the activities of virtual asset service providers, which include cryptocurrencies and crypto assets.

“An account opened by these Guidelines shall only be used for transactions on virtual/digital assets and not for any other purpose.

“No cash withdrawal shall be allowed from the account. No third-party cheque shall be cleared.

“Except for the settlement of a virtual/digital assets transaction, which shall be done through a transfer to another designated account, the withdrawal shall be only through a manager’s cheque or transfer to an account,” it stated.

The developments come after the CBN lifted the ban on cryptocurrency in December 2023.

To this end, Nigeria has joined the rest of African countries like South Africa, Botswana and others to regulate the cryptocurrency market amid its susceptibility to fraud.

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