Verifiably, the Central Bank of Nigeria (CBN) in February 2021 issued a circular restricting all banks and other financial institutions from operating / transacting for cryptocurrency providers in view of the risks of Money Laundering and Terrorrism associated with cryptocurrency.

However, yesterday being the 22nd of December, the ban was lifted and now they have been allowed to operate these accounts.

This comes as a result of the recent worldview on the need to regulate virtual assets and their providers (which include cryptocurrency and crypto assets).

Disclaimer: The header Image is AI generated and does not represent any actions against the Nigerian government.

HOW DOES THIS AFFECT THE AVERAGE NIGERIAN

Nigeria has been faced with economic instability due to the hike in the Currency exchange rates between the Nigerian Naira (NGN) and other currencies like the US. Dollar (USD).

This can partially be attributed to the closure of all official exchange channels leading to the scarcity of the exchange currency thereby increasing the rate and leading to a loss of value for the Nigerian Naira (NGN).

Possibly, the lift of the crypto ban would be the turning point to the Naira’s downward spiral pulling it up to better positions as given the resumed operations for cryptocurrency providers accounts, there should be an official exchange mechanism and this could lead to the resuscitation of the Nigerian Naira thus improving the economy and buying power of the Naira..

NEW REGULATIONS ??

Given the resumption of crypto related activities in the country, the Central Bank of Nigeria (CBN) has released some new regulations for these accounts ranging from the need to properly watch for very large transactions to a continuous verification and validation process.

And given the introduction and official use of Nigeria’s National Identity Number (NIN), it has become easier to verify and validate a user's information for financial and other purposes.

All institutions have been asked to be on the lookout for suspicious transactions which should be monitored, investigated and possibly reported. This has come as a means to try to curtail the problem of money Laundering using cryptocurrency assets.

For the average Nigerian, this news might not have much impact but for the average user of the cryptocurrency and blockchain space, this could eliminate the need to first buy dollar at exorbitant rates before using it for international and cross border transactions…

The naira may once again be introduced as an international standard for payment.

If you have any thoughts on this news, a contribution on how you think this can affect the average Nigerian Crypto user, do put them in the comment section…

Adios till we meet again.

PS: You can find the circular on the Lifting of the crypto ban at Cbn.gov.ng