The Central Bank of Nigeria has imposed restrictions on cryptocurrency transactions.
The apex bank revealed this in its recent guidelines on its website for operating cryptocurrency accounts known as Virtual Assets Service Providers.
According to the guidelines, cryptocurrency accounts will be used for only virtual/digital assets and not for any other basis.
In accordance with its new guidelines, CBN blocked cash withdrawals from cryptocurrency and noted that no third-party cheques should be approved.
The statement read:
“Current trends worldwide have revealed a need to control the activities of virtual asset service providers, which include cryptocurrencies and crypto assets.“An account opened by these Guidelines shall only be used for transactions on virtual/digital assets and not for other purpose(s).
“Additionally, no cash withdrawal shall be permitted from the account and no third-party cheque shall be cleared.”
“With the exception for the settlement of a virtual/digital assets transaction, which will be done only through a transfer to another designated account, the withdrawal shall be only through a manager’s cheque or transfer to an account.”
The development is coming after the CBN raised the ban on cryptocurrency in December 2023.
With the development, Nigeria joined the rest of African countries including South Africa, Botswana and others to control the cryptocurrency market amid its liability to fraud.
