Yellow Card, a prominent crypto exchange in Nigeria, predicts a significant uptick in cryptocurrency usage across the country starting in 2024, attributing the optimism to the recent guidelines issued by the Central Bank of Nigeria (CBN), which lifted the ban on crypto transactions.
Lasbery Oludimu, Chief Data Protection Officer and Vice President of Legal, Commercial, and Product at Yellow Card, emphasized the transformative impact of the CBN’s decision on public perception and the engagement of traditional financial institutions with cryptocurrencies.
He viewed the move as a crucial acknowledgment of the potential benefits and importance of digital assets in Nigeria’s evolving financial landscape.
According to Oludimu, the lifting of the ban sets the stage for increased collaboration between crypto platforms and traditional financial institutions, fostering integration and mutual benefit.
In terms of trust and confidence, Oludimu highlighted that the CBN’s guidelines create a regulated environment, anticipating a surge in user adoption and engagement in the coming months. The regulatory clarity is expected to instill trust among users, attracting more individuals and businesses into the crypto space.
He stated, “With the new policy fostering a regulated environment, Yellow Card anticipates a surge in user adoption and engagement in the coming months. The clarity provided by the regulatory framework instils trust and confidence among users, attracting more individuals and businesses into the crypto space.”
Acknowledging the evolving regulatory landscape, Oludimu emphasized the need for collaboration between the government, the Central Bank, and crypto industry players to shape the future of digital finance in Nigeria. Yellow Card expresses openness to constructive engagement with regulators and policymakers, offering insights and expertise to contribute to the formulation of inclusive and effective regulations.
The recent CBN guidelines for virtual assets allow virtual asset service providers (VASPs), including cryptocurrency organizations, to open accounts with Nigerian banks. However, the guidelines maintain that banks and financial institutions are still prohibited from holding, trading, and/or transacting in virtual currencies on their accounts.
The CBN justifies these guidelines by citing global trends and the necessity to regulate the activities of virtual VASPs. Notably, this marks a shift from the previous ban on crypto transactions, reflecting a more nuanced approach to the growing crypto landscape.
Nigeria was previously recognized as one of the top countries globally with a significant number of crypto users, a status now poised for further expansion with the revised regulatory stance.
