German cash use slips, India pressures crypto exchanges | PaymentsSource

Nigeria’s central bank has released inaugural guidelines for banks opening cryptocurrency accounts, while retaining its ban on them holding or trading in virtual assets on their own behalf. The rules, published on the central bank’s website on Tuesday, flesh out the regulator’s decision last month to lift its prohibition on banks operating accounts for crypto service providers.

“Current trends globally have shown that there is need to regulate the activities of virtual assets service providers which include cryptocurrencies and cryptoassets,” it said.

Nigeria joins other African regulators in extending oversight of cryptocurrencies, spurred by a string of corporate collapses capped by the bankruptcy of Bahamas-based exchange FTX in April. The continent’s most populous nation has seen a surge in virtual currency adoption, in part fueled by the steep decline of the nation’s fiat currency.

Only naira-based accounts will be permitted and there will be no cash withdrawals, the central bank said. The restrictions also bar clearing third-party checks through crypto accounts and will limit withdrawals to two per quarter. —Nduka Orjinmo, Bloomberg News