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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