The recent decision by the Central Bank of Nigeria (CBN) to lift the ban on crypto-related transactions by banks is expected to bring further vitality and competition to the ecosystem.
CBN has announced new guidelines for banks and local financial institutions to allow virtual asset service provider (VASP) account creation, ending the ban on touching virtual currencies that was in effect from 2021. .
🇳🇬 Regulation | Central Bank #Nigeria Lifting 2021 Banking Regulations on Cryptocurrency Exchanges and VASPs
In a circular sent to banks and financial institutions in Nigeria, the Central Bank (CBN) directed that the new regulations supersede previous directives… pic.twitter.com/FDkUDbDTuh
— BitKE (@BitcoinKE) December 23, 2023
The peer-to-peer (P2P) market, which was once dominant during the prohibition period, is now expected to change with increased support from banks. This change could boost competition and innovation in the cryptocurrency space in Nigeria. This is according to Mr. Oludimu, a Nigerian who works for one of Nigeria’s leading cryptocurrency exchanges.
Oludimu expects the use of cryptocurrencies in Nigeria to surge in 2024 due to the Central Bank of Nigeria (CBN)’s new guidelines and the lifting of the ban on crypto trading. He emphasized that the directive will contribute to establishing a more structured and regulated environment for virtual currency transactions in the country.
The re-entry of banks is also expected to improve transaction efficiency.
Mr. Ordim highlighted the potential impact of the CBN Guidelines, stressing that they could foster cooperation between crypto platforms and traditional financial institutions. This collaboration could pave the way to explore opportunities in the cryptocurrency space and ultimately foster greater integration and cooperation between traditional finance and digital assets.
Many African exchanges expect user adoption and engagement to increase due to the clarity that the regulatory framework provides. This newfound clarity is expected to draw more individuals and businesses into the crypto space in the coming months, indicating a positive trend for the platform.
Mr. Ordim added that this strategy includes:
- Actively seeking strategic partnerships
- Expanding the user base and
- It plays a role in the development of Nigeria’s digital asset ecosystem.
Most crypto exchanges in Africa aim to achieve this by introducing innovative solutions in line with recently established regulations, thereby contributing to the growth and development of Nigeria’s crypto landscape. Masu.
See also
![](https://i0.wp.com/bitcoinke.io/wp-content/uploads/2022/07/Replit-Website-Thumbnail.jpg?resize=100%2C100&ssl=1)
follow me twitter For the latest posts and updates
Join and interact telegram community
________________________________
________________________________
related
![](https://i0.wp.com/bitcoinke.io/wp-content/uploads/2023/09/Looking-for-Web3-Devs-Banner.jpeg?fit=1280%2C533&ssl=1)