CBN directs banks to disregard initial ban on cryptocurrency
The Central Bank of Nigeria (CBN) has directed banks to disregard the initial ban on cryptocurrency which the apex bank announced two years ago.
Haruna Mustapha, CBN’s director of financial policy and regulation, disclosed this in a circular on Friday.
The apex bank said it is now providing guidelines and regulations for banks with regard to managing cryptocurrency in line with global trends to avoid its misuse, while urging banks to comply with the guidelines and regulations.
See full statement below:
FPR/DIR/PUB/CIR/002/003
CIRCULAR TO ALL BANKS AND OTHER FINANCIAL INSTITUTIONS
GUIDELINES ON OPERATIONS OF BANK ACCOUNTS FOR VIRTUAL ASSETS SERVICE PROVIDERS (VASPs)
The CBN in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.
However, current trends globally have shown that there is need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPS to be regulated to prevent misuse of virtual assets for ML/TF/PF.
Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognizes VASPs as part of the definition of a financial institution. In addition, the Securities and Exchange Commission (SEC) in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPS to provide a regulatory framework for their operations in Nigeria.
In view of the foregoing, the CBN hereby issues this Guidelines to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria.
The Guidelines supersedes the CBN’s circulars referenced FPR/DIR/GEN/CIR/06/010 of January 12, 2017 and BSD/DIR/PUB/LAB/014/001 of February 5, 2021 on the subject. However, banks and other financial institutions are still prohibited from holding, trading and/or transacting in virtual currencies on their own account.
Accordingly, all banks and other financial institutions are hereby required to immediately comply with the provisions of the Guidelines.
HARUNA B. MUSTAFA
DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
States
Independence: NBA urges Nigerians to expect better future
The NBA said that ordinary Nigerians should be deriving benefit from the subsidy removal rather than hardship.
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Abuja
Local, global miners to converge in Abuja for Nigeria Mining Week
Cyril Azobu, partner and mining industry leader at PwC Nigeria, said Nigeria would leverage the event as a destination for investment.
Heading 2
5,990 FCTA education officers sit promotion exams after Wike’s intervention
Ms Nathan described Mr Wike’s intervention as a demonstration of the administration’s commitment to the Renewed Hope Agenda.
Politics
Only one female candidate in Kaduna governorship race
The final list of the 2027 Kaduna governorship election shows only one female candidate among the 16 contestants.
NationWide
Lawan urges Tinubu’s govt to place armed forces budget on first-line charge
Mr Lawan said a country’s security is not the business of uniformed personnel alone but requires everyone to contribute what is necessary.
Abuja
Strike: NLC, NUT reject Wike’s ‘illegal’ no-work, no-pay threat against FCT teachers
The NLC and NUT described the directive as “unconstitutional, illegal, provocative and unenforceable”.
Africa
U.S. condemns WFP attack, looting of humanitarian assistance in South Sudan
The United States condemned an armed attack on World Food Programme workers and the looting of humanitarian assistance in Chuilbong, Jonglei State, South Sudan.
