Breaking: God Answers Prayers Of Cryptocurrency Traders, CBN Lifts Ban

God Almighty may have answered the prayers of cryptocurrency traders and their acolytes as the Central Bank of Nigeria (CBN) lifts ban on the trade

The bank had placed a ban on transactions on cryptocurrency two years, as part of its oversight functions to protect activities in the money market.

That ban, though welcome in many quarters, also saw entrenched traders in the game grumbling.

There is a reversal today, following a CBN announcement in a circular by Haruna Mustapha, its Director of Financial Policy and Regulation.

Mustapha said that the apex bank would now provide regulations for financial institutions on how to manage cryptocurrency to avoid misuse.

According to him, current global trends have shown that there is a need to regulate the activities of Virtual Assets Service Providers (VASPs) which include cryptocurrencies and crypto assets.

“Following this development, the Financial Action Task Force (FATF) also updated its recommendation to require VASPs to be regulated, to prevent misuse of virtual assets.

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“In view of the foregoing, the CBN hereby issues this guideline to provide guidance to financial institutions under its regulatory purview in respect of their relationship with VASPs in Nigeria.

“The guidelines supersedes the CBN circular of Feb. 5, 2021on the subject,” the director said.

The CBN director used the opportunity to however, warn banks and other financial institutions against holding, trading or transacting in cryptocurrencies on their account.

It will be recalled that the CBN, had in a circular issued in February of 2021, banned banks and other financial institutions from proving services to cryptocurrency traders,  citing irregularities and the need to protect investors’ confidence in the system.

Cryptocurrency traders were seen then as potential accessory to illegal financial transactions like terrorism funding and general crime promotion, if not properly regulated.

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The Governor of the CBN, Godwin Emefiele accented that there was need to sanitise the sector including putting in place, regulatory mechanisms for the safety of operators.

Now the needful has been done, it is expected that cryptocurrency traders would return to the sector more emboldened but also circumspect to trade by the rules in the overral interest of the economy.