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The Central Bank of Nigeria (CBN) has recently lifted restrictions on banks handling accounts for virtual assets such as cryptocurrencies.
CBN outlined specific limitations, emphasizing that no cash withdrawals or third-party cheque issuance will be allowed for such accounts.
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Transactions involving these accounts are restricted to transfers into other designated accounts, using managers’ cheques and excluding cash withdrawals. These accounts are designated exclusively for virtual and digital asset transactions, foreign exchange flows, and trade, requiring a certificate of capital importation for opening.
Financial institutions are required to monitor activities in these accounts continuously, submitting monthly reports to the relevant supervisory department. Reports should detail account openings, transaction values, counterparty information, instances of fraud or theft, customer complaints, and remedial actions taken.
The guideline also mandates financial institutions to set transaction limits for each designated account, adhering to the maximum transaction charges outlined in the CBN’s guide to charges.
Additionally, these institutions are prohibited from entering concession agreements with designated account holders. The new guideline allows licensed virtual assets service providers, digital assets custodians, offering platforms, exchanges, and operators in the virtual and digital assets space, authorized by the Security and Exchange Commission (SEC), to open and operate accounts with financial institutions in Nigeria.
