Nigeria’s Crypto-Friendly Move Aids Yellow Card’s Plan to Expand
- Yellow Card Exchange plans to apply for a license in Nigeria to expand its crypto services to the country.
- The exchange’s move follows the CBN’s decision to lift its ban on crypto trading.
- Though the platform previously intended to launch an exchange in Nigeria, the country’s stringent rules restricted them.
Yellow Card, Africa’s largest centralized crypto exchange, has announced its plans to apply for a license in Nigeria following the Central Bank of Nigeria’s (CBN) strategic move to lift the crypto ban. Though the platform had previously sought support from Nigeria’s Securities and Exchange Commission (SEC), the stringent regulatory conditions of the country restricted Yellow Card from launching a crypto exchange in Nigeria.
In an interview with Bloomberg, Ogochukwu Umeokafor, Yellow Card’s Director of Product Management, commented on the company’s preference for a “regulated environment.” The Director cited,
“You’ve waited for something and it has come true and we’ll jump on it immediately. We want a regulated environment because it’ll help the business move; it will help people have more confidence in doing business with us.”
In 2021, the CBN prohibited banks and other financial institutions from being involved in crypto trading and transactions. The anti-crypto stance of the regulators stood as a barricade for Yellow Card to establish its crypto services in Nigeria, as it was impossible to obtain a Virtual Asset Service Provider (VASP) license without a bank account.
Recently, considering the growing demand and adoption of cryptocurrencies, the CBN began promoting crypto trading. According to a circular shared with the Nigerian banks, the CBN has asked banks to open accounts for crypto firms. The circular stated, “Current trends globally have shown that there is a need to regulate the services of virtual assets service providers (VASPs), which include cryptocurrencies and crypto assets.”
The move indicates Nigeria’s vision of fostering the establishment of crypto markets in the country, complying with comprehensive and crypto-friendly rules. In addition to providing guidelines for the banks’ involvement in crypto transactions, the CBN has warned the institutions within the country against holding, trading, or transacting in crypto on their account.
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