Central Bank of Nigeria Crypto Regulations

Amidst the global surge in cryptocurrency interest, the Central Bank of Nigeria (CBN) is re-evaluating its stringent 2021 restrictions.

The focus now lies on updated criteria aimed specifically at regulating virtual asset service providers (VASPs) in their interactions with banks and account establishment.

Stricter Criteria for Crypto Businesses

For crypto businesses seeking engagement with banks, the process now mandates the provision of the Bank Verification Number (BVN) of their management.

Furthermore, these entities must secure licensing from the Nigerian Securities and Exchange Commission and register with the Corporate Affairs Commission before gaining access to accounts.

These stringent measures aim to bolster risk management within licensed VASPs, explicitly barring financial institutions from engaging in cryptocurrency holding, trading, or transactions through their accounts.

Previous Bans and Collaborative Efforts

The CBN's prior ban in February 2021 had prohibited traders from using traditional banks for crypto-related transactions, necessitating the swift closure of associated accounts.

Concurrently, major Nigerian banks, including Access Bank, Sterling Bank, Providus, Korapay, First Bank, Interstellar, Interswitch, Budpay, and Convexity, are collaborating to develop the cNGN stablecoin.

Emergence of cNGN Stablecoin

This stablecoin is set to be tied and pegged to the Nigerian naira, effectively mirroring the country's fiat currency.

Its creation aims to complement Nigeria's central bank digital currency (CBDC), the eNaira.

Despite the eNaira's launch, widespread adoption has encountered hurdles.