{"id":1361,"date":"2024-01-02T15:02:10","date_gmt":"2024-01-02T15:02:10","guid":{"rendered":"https:\/\/aqqute.com\/blog\/?p=1361"},"modified":"2024-01-02T15:02:10","modified_gmt":"2024-01-02T15:02:10","slug":"the-central-bank-of-nigeria-recently-lifted-its-ban-on-local-banks-and-financial-institutions-serving-cryptocurrency-firms","status":"publish","type":"post","link":"https:\/\/aqqute.com\/blog\/2024\/01\/02\/the-central-bank-of-nigeria-recently-lifted-its-ban-on-local-banks-and-financial-institutions-serving-cryptocurrency-firms\/","title":{"rendered":"The Central Bank of Nigeria recently lifted its ban on local banks and financial institutions serving cryptocurrency firms."},"content":{"rendered":"

The decision, announced last week, reverses a 2021 directive restricting institutions from facilitating cryptocurrency transactions. While the Central Bank of Nigeria (CBN) clarified back then that it did not ban crypto trading, users shifted towards peer-to-peer trading.<\/span><\/p>\n

The reversal is expected to fuel the adoption of cryptocurrencies in Nigeria, one of the world\u2019s fastest adopters of digital assets. The move allows crypto exchanges and service providers to open bank accounts, potentially boosting adoption. Yellow Card, a prominent pan-African exchange, plans to pursue a crypto license in Nigeria under the new regulatory framework introduced in May.<\/span><\/p>\n

Lasbery Oludimu, Chief Data Protection Officer at Yellow Card, sees the new policy as creating a regulated environment that instills trust and confidence, anticipating a surge in user adoption. The CBN\u2019s decision aligns with the global trend of regulating crypto, as advocated by international entities like the Financial Stability Board and the International Monetary Fund.<\/span><\/p>\n

A Nigerian crypto personality expressed enthusiasm, calling the CBN circular a \u201cChristmas present.\u201d<\/span><\/p>\n

Cryptocurrency hedge funds are making a significant comeback after suffering massive setbacks in 2022.<\/span><\/p>\n

Several of these funds are recovering and seeing remarkable growth, with optimistic projections for 2024. Pantera Capital, a leading name in the cryptocurrency fund sector, is a prime example of this resurgence. Despite a steep 80% decline in 2022, according to Bloomberg reports, Pantera Capital\u2019s Liquid Token Fund has rebounded impressively, boasting an increase of nearly 80% as of mid-December.<\/span><\/p>\n

The fund\u2019s current investment strategy includes a significant stake in dYdX, while its combined investments in Bitcoin and Ethereum constitute less than 40% of the portfolio.<\/span><\/p>\n

his resurgence comes as a breath of fresh air to the crypto hedge fund industry, which faced significant setbacks following the collapse of FTX in the previous year. The event and a series of redemptions and challenges in accessing banking services led to the closure of nearly one-third of all crypto hedge funds.<\/span><\/p>\n

However, the surviving firms are now positioning themselves for continued success into 2024. This optimistic outlook is further bolstered by the sustained high value of Bitcoin, driven by expectations of crypto ETF approvals in the next few months.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The decision, announced last week, reverses a 2021 directive restricting institutions from facilitating cryptocurrency transactions. While the Central Bank of Nigeria (CBN) clarified back then that it did not ban crypto trading, users shifted towards peer-to-peer trading. The reversal is expected to fuel the adoption of cryptocurrencies in Nigeria, one of the world\u2019s fastest adopters …<\/p>\n","protected":false},"author":1,"featured_media":1362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulations"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/posts\/1361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/comments?post=1361"}],"version-history":[{"count":0,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/posts\/1361\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/media?parent=1361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/categories?post=1361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aqqute.com\/blog\/wp-json\/wp\/v2\/tags?post=1361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}