What is your take on this?

[0t3p0t]

Link: https://gazettengr.com/cbn-directs-banks-to-disregard-initial-ban-on-cryptocurrency/

The Central Bank of Nigeria (CBN) has directed banks to disregard the initial ban on cryptocurrency which the apex bank announced two years ago.

Haruna Mustapha, CBN’s director of financial policy and regulation, disclosed this in a circular on Friday.

The apex bank said it is now providing guidelines and regulations for banks with regard to managing cryptocurrency in line with global trends to avoid its misuse, while urging banks to comply with the guidelines and regulations.

CIRCULAR TO ALL BANKS AND OTHER FINANCIAL INSTITUTIONS

GUIDELINES ON OPERATIONS OF BANK ACCOUNTS FOR VIRTUAL ASSETS SERVICE PROVIDERS (VASPs)

The CBN in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.

However, current trends globally have shown that there is 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) in 2018 also updated its Recommendation 15 to require VASPS to be regulated to prevent misuse of virtual assets for ML/TF/PF.

Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognizes VASPs as part of the definition of a financial institution. In addition, the Securities and Exchange Commission (SEC) in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPS to provide a regulatory framework for their operations in Nigeria.

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

The Guidelines supersedes the CBN’s circulars referenced FPR/DIR/GEN/CIR/06/010 of January 12, 2017 and BSD/DIR/PUB/LAB/014/001 of February 5, 2021 on the subject. However, banks and other financial institutions are still prohibited from holding, trading and/or transacting in virtual currencies on their own account.

Accordingly, all banks and other financial institutions are hereby required to immediately comply with the provisions of the Guidelines.

HARUNA B. MUSTAFA

DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT

What could be the possible outcome of this in your country? Is this an advantage or disadvantage to crypto enthusiasts? What do you think? Please share your thoughts on this.

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[WillyAp]

 Well if people could forget about the ban they issued 2 years ago sure.

Investment is pretty finicky (jumpy) about governments outlawing something and later changing their mind.
That is what governments do not understand, they threaten, nationalize and when Money runs out they become all of sudden a player to be reckoned with? 
They tried that in Venezuela, but it did not work as planned.

Now there is an authority with anti crypto views which strangles all intents. The same authority which abused their power, confiscated a lot of mining equipment. 


https://cryptorank.io/news/feed/2e065-ripple-ceo-fortifies-legal-team-with-renowned-attorney-as-secs-xrp-war-heats-up

[Hatchy]

What could be the possible outcome of this in your country? Is this an advantage or disadvantage to crypto enthusiasts? What do you think? Please share your thoughts on this.

The Nigerian government made a good move by lifting the restrictions on cryptocurrency. Even though they banned crypto transactions through banks in 2021, people still managed to trade using peer-to-peer methods. I believe the government lifted the ban to divert attention from their failure to provide enough money for citizens during the festive season. The scarcity of Nigerian currency has made it difficult for people to travel, buy celebration items, and spend money freely. It seems the government is using this new strategy to address their inability to fix the currency issue. Nevertheless, it's a good thing as it will give chance for private owned exchanges to run ones again within the country.

[topbitcoin]

Of course, concerns and anxieties are always there, and the same goes for Nigeria, they are very worried that the presence of crypto in their country could lead to misuse of crypto currency due to the risk of money laundering, while the level of corruption cases in that country is quite high. . The government is only worried that this crypto will be used as a means to launder money for corruptors.

However, on the one hand, this policy is good enough to prevent misuse of crypto currency. But on the other hand, Nigeria also has to suffer a loss because it has missed a good opportunity to recover its economy, considering that this crypto currency investment is quite promising and still has quite good opportunities.

However, even so, I really appreciate the policies issued by the Nigerian government, because maybe what we think is good, may not necessarily be the same according to other people, and vice versa.

[Barikui1]

It's really a very good development, though this is not the administration that place a ban in it, but they are doing this to cover for their failings in other sector of the economy.
But never the less, it's really a good news for crypto enthusiastic in Nigeria.

[letteredhub]

The government of Nigeria have risen to the needful, and it will interest you all to know that the ban as it were was from the past administration of form president M. Buhari, and it's the  new administration that have just been sworn into power under president A. Tinubu that gave the directives for the lifting of the ban placed on cryptocurrencies transaction with banks. I perceive that the current administration is crypto friendly and understans the benefits and the trend of the current age through cryptocurrency.  We therefore anticipate to see more crypto adoption and high operations of institutionalized bodies like exchanges on the soil of Nigeria to hit the ground running..

Op there's another thread still on this that  was created almost 24hrs ago before yours dwelling on same development so I'll advise if you can lock yours to have the conversation in one piece under a single thread. Thank you! 👇
CENTRAL BANK OF NIGERIA LIFT THE BAN ON CRYPTOCURRENCY IN NIGERIA  

[kentrolla]

I couldn't make any sense out of it because only someone who is currently living in Nigeria will be able to clarify the ground reality and reason for government to go back on their decision. But this was something which was due to happen and as they first try to threaten people from using Crypto and then imposes ban but still I see good amount of Nigerians in this forums using crypto, when they cannot control it they are revoking the ban and I feel their would be some strong reasons like to cover up some of their flaws or else they don't want to be left behind.

But as far as I have seen in news and heard stories about the kind of government which runs Nigeria I don't think they would be doing this for betterment of people but rather for their own benefit and hidden agenda.

Any Nigerian there to shed some more lights on this?   

[Silberman]

 Well if people could forget about the ban they issued 2 years ago sure.

Investment is pretty finicky (jumpy) about governments outlawing something and later changing their mind.
That is what governments do not understand, they threaten, nationalize and when Money runs out they become all of sudden a player to be reckoned with? 
They tried that in Venezuela, but it did not work as planned.

Now there is an authority with anti crypto views which strangles all intents. The same authority which abused their power, confiscated a lot of mining equipment. 

To me this is just a very common trap that governments employ all the time, what they are trying to achieve is for all the people that deal with cryptocurrencies to feel there has been a change on their polices and come out in the open and admit what they are doing, eventually a few years down the line the government of Nigeria will change their mind once again and institute a ban, but at the time they will have the names and addresses of all of those people and they will turn against them.

[usekevin]

The Nigerian government made a good move by lifting the restrictions on cryptocurrency. Even though they banned crypto transactions through banks in 2021, people still managed to trade using peer-to-peer methods. I believe the government lifted the ban to divert attention from their failure to provide enough money for citizens during the festive season. The scarcity of Nigerian currency has made it difficult for people to travel, buy celebration items, and spend money freely. It seems the government is using this new strategy to address their inability to fix the currency issue. Nevertheless, it's a good thing as it will give chance for private owned exchanges to run ones again within the country.

It was the good move by the Nigerian government,because by manipulating the flow of the money in the cryptocurrency is alone enough for them to know the people involvement in the cryptocurrency.By regulating the government can charges taxes for the cryptocurrency trading.Before the people earning money by doing the campaign participation,cryptocurrency trading.But the contribution to the government will be low,the Nigerian government was very small economy.So the government allow the people to trade and getting taxes from their trading will be better tactics.

It's really a very good development, though this is not the administration that place a ban in it, but they are doing this to cover for their failings in other sector of the economy.
But never the less, it's really a good news for crypto enthusiastic in Nigeria.

The  Nigerian participation was huge in the number after the 2017 in the bitcoin,So the regulation will be the better move by the government officials in the Nigerian economy.Next year we have the bitcoin halves,So the government choose the best time for the regulation.

[oktana]

I’m not sure whose post was made first but I already commented on a similar post that talks about the lift of cryptocurrency ban in Nigeria. Maybe you or the other forum member should have checked if the post existed in this forum before posting it… this way all comments and opinions will simply fall into one thread rather than being split amongst two threads (hopefully there isn’t another topic made by someone else about this).

[bounceback]

I think Nigeria need revolution with their parliament why dislike feature of bitcoin, if there are still have election each four years better not choose them not agree and banned bitcoin in your country. Right now, many of exchange have feature with P2P exchange and not really bad viewed when bitcoin have been banned in Nigeria and not allowed link Bank account to withdraw cryptocurrency fund trough local exchange market.

Build up your local community and make campaign how to choose parliament support bitcoin as commodity assets or allowed link Bank account to withdraw fund from bitcoin, left option awhile is selling cryptocurrency to be fiat or cash trough P2P exchange and look which one exchange with support P2P more popular in your country.

[bluebit25]

Change and being forced to accept the general trend if you don't want to be left behind, although in the past this caused some negative reactions with local users, I believe we all understand those legal issues. Although it's not always convenient when the perspective on benefits is always really complicated. Anyway, this time we have seen another positive thing that is beneficial for this sector. Although I can express that no one can ban it if we still want to use it, restrictions only increase the niches, but this can be seen as Nigeria becoming a pioneer in the continent's digital economic landscape. I can sense a significant change in the governments of many countries taking a positive and serious look at the Blockchain field, even though I also live in a place where this field is quite complex but have heard of the government encouraging it.

[uneng]

What could be the possible outcome of this in your country? Is this an advantage or disadvantage to crypto enthusiasts? What do you think? Please share your thoughts on this.

It's a signal the government is changing their previous stance towards cryptocurrencies. From a total hostile stance to a more friendly one. Of course it can't happen at once, so they are likely to change their views on crypto in slow dosages, but continuously in a positive progressive scale. I'm not from your country, but I think these are good news, since crypto enthusiasts will be able to get out from the shades they were forced to move into in order to deal with cryptocurrencies during the government's ban.

If the government is going to give legal guarantees their citizens can make use of crypto without fearing being considered criminals for some reason, that is a very good boost to encourage even more people adopting digital currencies. However, you also have to be attentive to how regulations are going to be passed ahead, and if they will prejudice enthusiasts somehow, especially regards expensive taxes imposed by local authorities on crypto sales.

[icalical]

I think that is definitely an improvement, I also think that Nigeria is doing the right thing for banning Crypto for a couple of years, if they need sometimes to finally understand how to fully protect their people from fraud and scam that is using cyrpto. Now with the lift of ban, what Nigerian people should oversee is the policies that will be imposed to cryptocurrency, will this policies be in favor of the people or just for big money speculators, or the government.

[Uruhara]

Link: https://gazettengr.com/cbn-directs-banks-to-disregard-initial-ban-on-cryptocurrency/

What could be the possible outcome of this in your country? Is this an advantage or disadvantage to crypto enthusiasts? What do you think? Please share your thoughts on this.

From my point of view the government's decision in this matter is quite good. And maybe it will have a positive impact on crypto users there. Rather than prohibiting it, it would be better if clear regulations were made that provide better boundaries and regulations. Which can benefit the government and also provide convenience to crypto users. But I still feel like there's something not quite right there. Why just ignore. Why not just create a new policy and delete the old policy. to make it clearer (Or maybe it's still in the making stage). Does that mean that everything is still not at a definite stage? Or is there still another consideration that has not been revealed. But what is certain is that this news is quite positive from my point of view. Please correct me if me misunderstand this.

[bhadz]

It is inevitable for them to adopt Bitcoin and the entire crypto movement on their country when it is their citizens that are speaking for its adoption. They can't avoid to see the benefits that their country and economy will get from bringing in these laws into adoptions instead of imposing bans and restrictions that will just give hard time for their citizens that will contribute through bringing in more money through their trades and cashing out on the form of their currency. However, they can listen or keep on insisting the ban but what I like to say on them is, they should give it a chance and see how impactful and helpful it is for their country.

[WillyAp]

will change their mind once again and institute a ban, but at the time they will have the names and addresses of all of those people and they will turn against them.

Not only in Nigeria I fear governments generally can't be trusted.

[Die_empty]

What could be the possible outcome of this in your country? Is this an advantage or disadvantage to crypto enthusiasts? What do you think? Please share your thoughts on this.

Comparing this directive with the government's former stance on cryptocurrencies, this current law is a big advantage. Although banks are still restricted from trading or holding crypto in their account but individuals and corporate bodies could deal in cryptocurrencies and banks will facilitate payments for crypto exchanges. The news also indicated that the government is still developing a legal framework for the regulation of the crypto sector.

This is a big win for crypto users in Nigeria because due to these restrictions, many crypto businesses have suffered several setbacks and other investors have been forced to avoid the Nigerian market. This latest policy will lead to a fast development of the crypto sector because Nigeria has a very large market. A report claimed that about 33.4 million Nigerians own cryptocurrencies but as of April this year, Nigeria has just two Bitcoin ATMs located in one city. But this new law will be a stepping stone for better days ahead.

[Gozie51]

Of course, concerns and anxieties are always there, and the same goes for Nigeria, they are very worried that the presence of crypto in their country could lead to misuse of crypto currency due to the risk of money laundering, while the level of corruption cases in that country is quite high. . The government is only worried that this crypto will be used as a means to launder money for corruptors.

To me this is the least of worries from the government. Money laundering or corruption practices through cryptocurrency is not the problem for the government or reason for banning crypto back then in Nigeria. It emanated from the #Endsars agitation that encompasses police brutality on the people and other extra judicial killings going on in the country and still going on presently. So the agitators on the streets on Nigeria across all the states needed to be financed because they stayed like two weeks day and night on the streets. The financers of this protest did that through cryptocurrency because they don't want to be easily traced through fiat and so the government woke up to freeze those exchange accounts that where link to the banks.

Therefore, the banning was more of an afterthought not a predetermined policy of the government backed with their monetary policy but just because they want to get to some people and not to allow untraceable financing of any such of agitation.

It is not to check money laundering or corruption because they don't need crypto to launder money. They are not quite serious to fight corruption . Hopefully, the unbanning will help more trade to freely open up among the youths.

[electronicash]

it's not surprising anymore to see banks taking a 180 turn from their old policy. because there were already banks allowing crypto in their client's accounts. it would be too good to believe that banks will be able to allow users to exchange their fiat for crypto. but it's got to be good news for the adoption of crypto.

Of course, concerns and anxieties are always there, and the same goes for Nigeria, they are very worried that the presence of crypto in their country could lead to misuse of crypto currency due to the risk of money laundering, while the level of corruption cases in that country is quite high. . The government is only worried that this crypto will be used as a means to launder money for corruptors.

To me this is the least of worries from the government. Money laundering or corruption practices through cryptocurrency is not the problem for the government or reason for banning crypto back then in Nigeria. It emanated from the #Endsars agitation that encompasses police brutality on the people and other extra judicial killings going on in the country and still going on presently. So the agitators on the streets on Nigeria across all the states needed to be financed because they stayed like two weeks day and night on the streets. The financers of this protest did that through cryptocurrency because they don't want to be easily traced through fiat and so the government woke up to freeze those exchange accounts that where link to the banks.

Therefore, the banning was more of an afterthought not a predetermined policy of the government backed with their monetary policy but just because they want to get to some people and not to allow untraceable financing of any such of agitation.

It is not to check money laundering or corruption because they don't need crypto to launder money. They are not quite serious to fight corruption . Hopefully, the unbanning will help more trade to freely open up among the youths.

it would take balls for someone to risk laundering money with local banks being a client. once they know you are engaging in crypto, they are already going to be suspicious to your activity.