Nigeria Resumes Cryptocurrency Transactions With New Guidelines For VASPs

The Central Bank of Nigeria (CBN) recently released comprehensive guidelines to regulate bank account operations for virtual asset service providers (VASPs), marking the end of a two-year ban on cryptocurrency transactions. This information is detailed in a circular titled Guidelines on Bank Account Operations for Virtual Asset Service Providersissued by Haruna B. Mustafa, Director of the Department of Financial Policy and Regulation of the CBN.

While the ban lasted, Nigerians defied the odds and the volume of crypto transactions in Nigeria grew 9% year-over-year to reach $56.7 billion between July 2022 and June 2023, according to blockchain research firm Chainalysis, based in New York, in a September report. Nigeria is also reported to have the highest peer-to-peer (P2P) trading volume, according to the Crypto Geography Report 2023. A recent study by KuCoin found that 35% of Nigerians between the ages of 18 and 60 invest or trade bitcoins or other cryptocurrencies.