The Central Bank of Nigeria (CBN) has reportedly lifted restrictions on Virtual Asset Service Providers (VASPs) from opening bank accounts in the country, as stated in a report by Nigerian publication BusinessDay.
This marks a reversal of the February 2021 order instructing banks to close accounts associated with digital asset activities. However, the policy change does not rescind the ban on banks engaging in cryptocurrency transactions or holding digital assets.
Under the new policy, VASPs in Nigeria must be regulated by the country’s SEC before operating, and obtaining a license requires a deposit of at least 500 million Naira (approximately $550,000 USD) in a bank account.
This requirement may pose challenges for smaller players in the market. Notably, pan-African exchange Yellow Card plans to promptly apply for a license, overcoming the hurdle of not having a Nigerian bank account, according to Bloomberg.
