Yellow Card, a Nigeria-based cryptocurrency exchange, anticipates a significant surge in cryptocurrency utilization within the nation in 2024 following the central bank’s circular that lifted crypto restrictions.
The CBN’s decision would affect the public’s and traditional financial institutions’ perception of cryptocurrencies, according to Yellow Card’s Chief Data Protection Officer and Vice President of Legal, Commercial, and Product, Lasbery Oludimu, who spoke to Nairametrics.
The official told the publication that removing the prohibition partially enhances the regulator’s recognition of digital assets.
According to Oludimu, this regulatory change may encourage greater collaboration between conventional financial institutions and the cryptocurrency industry.
Following the CBN’s reevaluation of its position on virtual asset providers, Yellow Card Exchange was one of Africa’s initial crypto trading platforms to announce that it was actively pursuing a Nigerian license.
In the interim, Quidax, an additional prominent cryptocurrency exchange in the area, declared the launch of a complimentary service for Nigerian customers to make deposits and withdrawals from their bank accounts.
Oludimu emphasized the potential for the CBN’s guidelines to foster confidence and trust among cryptocurrency enterprises that are operational in the area.
“Yellow Card expects a surge in user engagement and adoption in the coming months due to the implemented policy’s promotion of a regulated environment,” he stated.
Nigeria may join the ranks of the numerous nations implementing cryptocurrency regulations. This occurred after a joint advisory by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) that advised against enforcing a comprehensive prohibition on digital assets. This year, in a joint report, the agencies espoused the value of targeted regulatory measures.
In addition, the international organizations underscored the significance of implementing regulations about money laundering and terrorist financing (AML/CFT) to mitigate certain vulnerabilities within the industry.
