Nigeria’s Central Bank has removed a two-year restriction on cryptocurrency transactions as it introduces stringent customer KYC and anti-money laundering checks. The CBN banned banks from crypto-related transactions in 2021, citing money laundering and terrorism financing concerns.
The regulator has now reversed that ban and taken a positive posture towards digital currency assets, issuing new guidelines to financial institutions for crypto transactions.
Based on the new guidelines released, banks must obtain the bank verification number of all directors and owners of crypto businesses that use their services.
The rules also mandate cryptocurrency companies to secure a license from the country’s capital markets regulator, the Securities Exchange Commission.