In Nigeria, one of the countries with the world’s fastest adoption of digital assets, the Central Bank of Nigeria has lifted a ban on local banks and financial institutions servicing crypto-asset companies. This is likely to encourage the use of crypto assets in the country.

The decision, announced last week, cancels a 2021 directive for institutions facilitating crypto-asset transactions. At the time, the central bank was forced to clarify that it was not banning crypto-asset trading within the country. However, adoption continued as users switched to peer-to-peer transactions.

The lifting of restrictions on bank account opening for crypto exchanges and other service providers could boost adoption. Prominent companies such as pan-African crypto exchange Yellow Card have said they will seek to obtain crypto licenses in the country under the framework introduced in May this year.

Lasbery Oludimu, Yellow Card’s chief data protection officer, told local news outlet Nairametrics on the 21st: “The new policy will foster a regulatory environment that will encourage users to start using and engage. Yellow Card predicts that the regulatory framework will increase the number of crypto assets rapidly in the coming months. “It will attract people to this field,” he said.

Although not yet published on the Central Bank of Nigeria website, the announcement number FPR/DIR/PUB/CIR/002/003 states that the change is due to global trends in regulating crypto assets. . International standard-setting bodies such as the Financial Stability Board (FSB) and the International Monetary Fund (IMF) recommend oversight of the industry rather than an outright ban.

One Nigerian crypto user on Twitter called the Central Bank of Nigeria’s announcement a “Christmas present.”

｜Translation and editing: Rinan Hayashi
｜Image: Nupo Deyon Daniel/Unsplash
｜Original text: Nigeria Lifting Ban on Bank Accounts for Crypto Firms Could Lead to Usage ‘Surge’