The Central Bank of Nigeria has condemned cryptocurrency transaction limitations.
This was stated by the apex bank in recent rules posted on its website for those who operate cryptocurrency accounts known as Virtual Assets Service Providers.
The guidelines state that bitcoin accounts should only be used for virtual/digital assets and not for anything else.
As a result, the CBN prohibited cryptocurrency cash withdrawals and stated that no third-party cheques should be cleared.
“Current trends globally have shown a need to regulate the activities of virtual asset service providers, which include cryptocurrencies and crypto assets.
“An account opened by these Guidelines shall only be used for transactions on virtual/digital assets and not for any other purpose.
“No cash withdrawal shall be allowed from the account. No third-party cheque shall be cleared.
“Except for the settlement of a virtual/digital assets transaction, which shall be done through a transfer to another designated account, the withdrawal shall be only through a manager’s cheque or transfer to an account,” it stated.
The developments come after the CBN lifted the ban on cryptocurrency in December 2023.
To this end, Nigeria has joined the rest of African countries like South Africa, Botswana and others to regulate the cryptocurrency market amid its susceptibility to fraud.