The Central Bank of Nigeria (CBN) lifted the ban on cryptocurrency transactions that it implemented in February 2021.
The ban sparked outrage and protests from the country's active crypto community, which saw the ban as a threat to their financial freedom and innovation.
The CBN issued a new circular dated December 18, 2023, allowing banks and other financial institutions to provide services to crypto exchanges and their customers, provided that they strictly comply with the existing regulatory framework.
The circular states that banks and other financial institutions must conduct appropriate customer verification (KYC) and due diligence on crypto transactions, as well as monitor and report suspicious or illegal activity to the relevant authorities.
The circular also warns that if the guidelines are violated, serious sanctions will be imposed, including cancellation of licenses, fines and criminal prosecution.
In the pre-ban period, Nigeria was the world's second largest market for peer-to-peer (P2P) crypto trading after the United States, with over $566 million in transactions processed.
*This is not investment advice.