January 03, (THEWILL) – The Central Bank of Nigeria (CBN) has announced that cash withdrawals will not be possible from accounts operated for virtual and digital asset transactions.
Withdrawals from these accounts would only be available by transfer or manager’s check, according to the apex bank.
This was revealed in a new set of ‘Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers.’
According to the CBN an account formed under its new standards will only be used for virtual or digital asset transactions and will not be utilized for any other reason.
The guideline is,”No cash withdrawal shall be allowed from the account. No third-party check shall be cleared from the account.
”Except for the settlement of a virtual or digital asset transaction, which shall be done through a transfer to another designated account, the withdrawal shall be only through a manager’s check or transfer to an account.”
THEWILL recalls that the apex bank had in December 2023, through a circular to all banks and other financial institutions guidelines issued a directive on operations of bank accounts for Virtual Assets Service Providers.
In the circular with reference number FPR/DIR/PUB/CIR/002/003, and signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa, the banking regulator announced a policy change on crypto assets and directed banks to begin to aid crypto transactions.
In its new policy orientation, the bank claimed that it was more open to the possibility of regulation than its previous position of excluding crypto assets from the conventional banking sector.
The guideline, which was released alongside the circular, is intended to serve as the framework for the reintroduction of cryptocurrency into the formal banking sector.
The announcement further added that the Guidelines shall apply to banks and other financial institutions under the regulatory purview of the CBN.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
