Yellow Card Crypto Exchange Applies for Licence to Operate in Nigeria as CBN Lifts Ban
- Yellow Card Inc. has applied for a cryptocurrency license to operate in Nigeria
- The move follows CBN's lifting of the ban on crypto transactions by banks in Nigeria
- The company had said it wanted a regulated crypto environment that could accelerate its business
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Yellow Card Financial Inc. says it will apply for a license in Nigeria after the Central Bank of Nigeria (CBN) lifted a ban on cryptocurrency transactions imposed two years ago.
According to Ogochukwu Umeokafor, the company's director of product management, the firm wanted a regulated environment and could not wait to jump on the opportunity because it would accelerate its business and promote confidence in doing business with the company.
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Yellow Card operates in 15 African countries
The pan-African crypto company, which has presence in Nigeria and about 15 other African countries, had begun discussions with the Nigerians Securities and Exchange Commission (SEC) to operate a crypto exchange after the SEC opened applications for licenses for issuers and holders of digital assets and exchanges.
The company needed a bank account to apply for a Virtual Asset Service Provider (VASP) license.
On Friday, December 22, 2023, Nigeria's apex bank asked banks and financial institutions to open accounts for crypto companies, ostensibly reversing an order banning deposit money banks and institutions from transacting in or operating cryptocurrency exchanges.
The CBN order also mandated banks to close accounts associated with cryptos immediately.
Nigeria has the highest rate of crypto adoption in Africa
Bloomberg reports that Nigeria has the highest rate of crypto adoption after India, spurred by citizens seeking digital assets to protect themselves against soaring inflation and weak naira.
On June 14, 2023, the Nigerian government relaxed foreign exchange rules, removing the disparity between the official and parallel markets.
Analysts believe the action will boost crypto exchanges, seeking expansion in Africa's largest economy and ranking second in blockchain data firm Chainalysis's adoption index.
Yellow Card currently offers limited crypto services in Nigeria and holds a registration status, engaging in buying and selling Bitcoin and Tether's stablecoin with the naira.
It also lets customers use the platform for other financial transactions.
Another country overtakes Nigeria as top Bitcoin trading Nation, data shows new Interest
Legit.ng reported that Brazil has displaced Nigeria in Bitcoin trading, with the current top position occupied by El Salvador and Nigeria trailing in third place.
Interest in the world's largest cryptocurrency is increasing in Brazil and has been boosted by the country's largest bank, Itau Unibanco's foray into the cryptocurrency market.
The bank initially offered crypto trading services in Bitcoin and Ethereum, but its expansion into the digital asset ecosystem is based on recent happenings in crypto regulation in Brazil.
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Source: Legit.ng
