Nigerian Central Bank Imposes New Restrictions on Cryptocurrency Transactions

The Central Bank of Nigeria (CBN) has recently introduced fresh restrictions on cryptocurrency transactions in the country, limiting the scope of digital asset operations for financial institutions and individuals alike.

This move comes as a surprise to many, considering the growing interest in cryptocurrencies worldwide.

According to a circular released by the CBN, banks are now prohibited from facilitating cash withdrawals from cryptocurrency accounts.

The apex bank also mandated that all transactions must be conducted through the Naira, the country’s local currency.

These new restrictions have stirred up mixed reactions among cryptocurrency enthusiasts and financial analysts in Nigeria.

The CBN’s decision to impose these restrictions is not entirely unexpected, as it had previously banned cryptocurrency transactions in 2017.

However, the ban was lifted in 2023, allowing banks to open accounts for digital asset service providers.

The latest restrictions seem to be an attempt by the central bank to regulate the cryptocurrency market more tightly and protect the country’s financial system.

In the wake of this news, cryptocurrency exchanges operating in Nigeria have had to adjust their operations to comply with the new rules.

Some have expressed concerns about the impact of these restrictions on the growth of the digital asset market in the country.

Others, however, believe that these measures will help to curb illicit activities and promote a safer environment for cryptocurrency transactions.