The Central Bank of Nigeria (CBN) recently announced the lifting of restrictions on banks operating accounts for virtual assets like cryptocurrencies. However, the CBN highlighted specific limitations on these accounts, emphasizing no cash withdrawals or third-party cheque issuance for such accounts. Instead, only transfers into other designated accounts will be permitted.
As per the guidelines published by the apex bank, transactions involving virtual assets bank accounts will be conducted through managers’ cheques, excluding cash withdrawals. These accounts are intended solely for virtual and digital assets transactions, foreign exchange flows, and trade, requiring a certificate of capital importation for account opening.
Furthermore, financial institutions must continuously monitor activities in these designated accounts and submit monthly reports to the relevant supervisory department, detailing 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, following the maximum transaction charges outlined in the CBN’s guide to charges. Additionally, it prohibits these institutions from entering concession agreements with designated account holders.
The new guideline permits 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.
