Nigeria Lifted Restrictions On Bank Accounts For Crypto Companies

According to the latest reports, it seems that Nigeria lifted restrictions on bank accounts for the crypto companies. Check out the latest reports about this below.

The Central Bank of Nigeria (CBN) has lifted its ban on Virtual Asset Service Providers (VASPs) from opening bank accounts in the country.

This move comes after the CBN ordered banks to close accounts connected to digital asset activity in February 2021.

However, it is important to note that the new policy does not reverse the country’s ban on banks transacting in cryptocurrency or holding digital assets themselves.

This recent development was reported by Nigerian publication BusinessDay.

Nigeria has introduced new regulations for Virtual Asset Service Providers (VASPs) in the country.

Any VASPs operating in Nigeria will need to be regulated by the country’s SEC and deposit at least 500 million Naira (about $550,000 USD) in a bank account to obtain a license.

This could affect smaller players in the market, according to reports.

Yellow Card, a pan-African exchange, intends to apply for a license immediately, according to a Bloomberg report.

However, the company’s lack of a Nigerian bank account is the main obstacle standing in the way of their application.

Despite regulatory restrictions, Nigeria’s tech-savvy younger population has been increasingly adopting cryptocurrencies in recent years.

As a result of these restrictions, crypto traders in the country often trade peer-to-peer.

The U.S. Securities and Exchange Commission (SEC) admitted to making an inaccurate statement in an ongoing crypto fraud case after being questioned by a judge.

In July, the regulator obtained a temporary asset freeze, restraining order and other emergency relief against Digital Licensing Inc. This Utah-based company was doing business under the name “DEBT Box.”

According to the SEC, the company and its founders were operating a fraudulent scheme by selling fake “node licenses” to investors.