Thursday, 04 January 2024 04:48

CBN slaps strict rules on banks after lifting ban on cryptocurrency transactions

Rate this item
(0 votes)

Central Bank of Nigeria has released inaugural guidelines for banks opening cryptocurrency accounts, while retaining its ban on them holding or trading in virtual assets on their own behalf.

The rules, published on the CBN website on Tuesday, flesh out the regulator’s decision last month to lift its prohibition on banks operating accounts for crypto service providers.

“Current trends globally have shown that there is need to regulate the activities of virtual assets service providers which include cryptocurrencies and cryptoassets,” it said.

Nigeria joins other African regulators in extending oversight of cryptocurrencies, spurred by a string of corporate collapses capped by the bankruptcy of Bahamas-based exchange FTX in April. The continent’s most populous nation has seen a surge in virtual currency adoption, in part fueled by the steep decline of the nation’s fiat currency.

Only naira-based accounts will be permitted and there will be no cash withdrawals, the CBN said. The restrictions also bar clearing third-party checks through crypto accounts and will limit withdrawals to two per quarter.

South Africa, the backdrop to several of the world’s largest crypto scams, in July ordered crypto exchanges operating in the country to apply for licenses by the end of 2023.

That followed neighbor Botswana passing a law in 2022 to regulate the sector which lawmakers said risked becoming the “Wild West” of finance. Kenya has not licensed cryptocurrency activity but has also declined to outlaw it while it prepares regulations.

Elsewhere, the Bank of Mauritius has been pushing ahead with plans to launch a central bank digital currency as part of a broader strategy to embrace financial technology on the Indian Ocean island.

 

Bloomberg

November 02, 2024

IPMAN accuses Dangote Refinery of selling fuel at prices higher than even imported products

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has voiced concerns over the high logistical…
October 31, 2024

Rivers’ funds: ‘Elements loyal to Tinubu govt pulling strings from behind the scenes - Atiku

As reactions continue to trill the judgement of a Federal High Court in Abuja on…
October 31, 2024

The No. 1 misconception about failing

Aditi Shrikant There are few massive success stories that didn’t start out with some sort…
November 02, 2024

This startup helps parents-to-be select embryos for ‘designer babies’ with higher IQ, other traits

American start-up Heliospect Genomics is charging wealthy parents-to-be up to $50,000 to screen their embryos…
October 27, 2024

That simple 'hi' text from a stranger could be the start of a scam that…

“Pig butchering" operations run out of Asia but target victims globally, with scammers promising love…
November 02, 2024

Here’s the latest as Israel-Hamas war enters Day 393

Ceasefire hopes fade as Israel bombards Gaza, Lebanon Prospects of a ceasefire between Israel and…
October 16, 2024

The AI revolution: How Predictive, Prescriptive, and Generative AI are reshaping the world

Bernard Marr In the ever-evolving landscape of artificial intelligence, three powerful forces are reshaping our…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.