The Central Bank of Nigeria (CBN) has lifted restrictions on Nigerian banks facilitating cryptocurrency transactions, according to a circular sent on Dec. 22. This move is expected to intensify competition between crypto-fiat exchanges and peer-to-peer (P2P) merchants. The initial ban by the CBN on banks aiding crypto transactions had led to the dominance of P2P merchants. However, the lifting of the ban is seen as a positive development for the industry, signaling that Nigeria is ready for crypto businesses to operate within its borders.

Nathaniel Luz, co-founder and CMO of Flincap, believes that institutional exchanges should now focus on the Nigerian market, as their absence during the ban allowed P2P trading to flourish. He predicts that the battle for the largest crypto P2P market in the world will now commence between crypto-fiat exchanges and P2P merchants. While the requirement of registration with the SEC may pose a challenge for startups, Luz believes it will ultimately benefit the crypto sector.

The circular from the CBN acknowledges the increasing global demand and adoption of crypto, making it unjustifiable to maintain stringent restrictions on financial institutions. This decision comes after the CBN had previously banned regulated financial institutions from offering services to crypto exchanges in February 2021.

Overall, the lifting of the ban on cryptocurrency transactions by Nigerian banks is expected to have a significant impact on the crypto industry in Nigeria, leading to increased competition and opportunities for both crypto-fiat exchanges and P2P merchants.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Africa
Countries	🇳🇬
Sentiment	very positive
Relevance Score	1
People	Nathaniel Luz
Companies	Cointelegraph, Nigerian banking sector, SEC, Flincap, Central Bank of Nigeria
Currencies	Bitcoin
Securities	None