Goli Innocent 
The Central Bank of Nigeria (CBN) has released inaugural guidelines for Deposit Money Banks (DMBs) opening cryptocurrency accounts while retaining its ban on them holding or trading in virtual assets on their own behalf.
The rules, published on the Central Bank’s website on Tuesday stated the apex bank’s decision last month to lift its prohibition on banks operating accounts for crypto service providers.
“Current trends globally have shown that there is a need to regulate the activities of virtual assets service providers which include cryptocurrencies and crypto assets,” it said.
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Nigeria joins other African regulators in extending oversight of cryptocurrencies, spurred by a string of corporate collapses capped by the bankruptcy of Bahamas-based exchange FTX in April. Nigeria has seen a surge in virtual currency adoption, stimulated by the decline of the nation’s currency.
Only naira-based accounts will be permitted and there will be no cash withdrawals, the central bank said. The restrictions also bar clearing third-party checks through crypto accounts and will limit withdrawals to two per quarter.
South Africa, the backdrop to several of the world’s largest crypto scams, in July, ordered crypto exchanges operating in the country to apply for licenses by the end of 2023.
