CBN considers new round of bank recapitalization

CBN imposes new restrictions on virtual currency transactions

The Central Bank of Nigeria has slammed restrictions on virtual currency transactions.

The apex bank, known as a virtual asset service provider, made this clear in recent guidelines on its website regarding the operation of virtual currency accounts.

According to the guidelines, cryptocurrency accounts are only used for virtual/digital assets and not for any other purpose.

Therefore, the CBN noted that cash withdrawals from virtual currencies should be prohibited and third-party checks should not be passed.

“Current global trends demonstrate the need to regulate the activities of virtual asset service providers, including cryptocurrencies and cryptoassets.

“Accounts opened in accordance with these guidelines will only be used for trading virtual/digital assets and not for any other purpose.

“Withdrawals of cash from the account are not allowed. Third party checks will not be cleared.

“Except for the settlement of virtual/digital asset transactions made through transfers to another designated account, withdrawals will only be made by check or transfer to the administrator’s account.”

This development came after the CBN lifted the ban on virtual currencies in December 2023.

To this end, Nigeria, like other African countries such as South Africa and Botswana, has decided to regulate the cryptocurrency market, which is susceptible to fraud.


Leave a Reply

Your email address will not be published. Required fields are marked *