Yellow Card Leads Nigeria’s Crypto Market After CBN Ban

(iexclusivenews) – The Central Bank of Nigeria (CBN) has recently issued new guidelines that allow cryptocurrency service providers to open accounts with Nigerian banks, effectively lifting the ban on crypto transactions that was imposed in 2021.

This is a welcome development for the Nigerian crypto sector, which has grown rapidly despite the regulatory challenges.

Yellow Card, one of the leading crypto exchanges in Nigeria, sees this as an opportunity to gain more legitimacy and integration with the traditional financial system, as well as to expand its user base and offer more innovative solutions.

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Yellow Card’s Outlook on the Nigerian Crypto Market

In an exclusive interview with Cointelegraph, Lasbery Oludimu, the chief data protection officer and vice president of legal, commercial and product at Yellow Card, shared her insights on how the CBN guidelines will impact the Nigerian crypto market.

She said that the peer-to-peer (P2P) market, which was the main mode of crypto transactions during the ban, will undergo a transformation with the increased banking support.

She expects that this will create more competition and innovation in the Nigerian crypto space, as well as more convenience and security for the users.

Oludimu also confirmed that Yellow Card believes that cryptocurrency usage will surge in Nigeria in 2024, as the CBN guidelines will create a more structured and regulated environment for crypto transactions.

She said that this will foster more trust and confidence in the Nigerian crypto sector, as well as encourage collaboration with traditional financial institutions to explore the opportunities within the crypto space.

She added that this will pave the way for greater integration and cooperation between traditional finance and digital assets, which will benefit both the users and the broader crypto ecosystem.

“This decision is a step in the right direction to foster innovation, as well as provide a conducive environment for legitimate businesses like Yellow Card to operate, thereby benefiting users, increasing the crypto adoption rate in Nigeria and the broader crypto ecosystem.”

Yellow Card’s Plans and Goals for the Future

Oludimu also revealed that Yellow Card has ambitious plans and goals for the future, as it aims to seek strategic partnerships, grow its user base, and contribute to advancing Nigeria’s digital assets ecosystem.

She said that Yellow Card will introduce innovative solutions that are aligned with the newly established regulations, as well as cater to the needs and preferences of the Nigerian crypto users.

She also said that Yellow Card will continue to provide education and awareness on crypto and blockchain, as well as support the development of the local crypto community.

The CBN guidelines for digital assets were released on Dec. 22, 2023, and they allow virtual assets service providers, which include cryptocurrencies and crypto assets organizations, to open accounts with Nigerian banks, subject to certain conditions and requirements.

This came two years after the CBN restricted banks and other financial institutions from operating accounts for cryptocurrency service providers, citing concerns over money laundering, terrorism financing, and other illicit activities.

The new policy is seen as a positive sign for the Nigerian crypto sector, which has been one of the most active and vibrant in Africa and the world.