Nigeria’s Crypto Industry Gears Up for Growth After Ban Reversal

Nigeria’s crypto scene is buzzing with excitement following the recent lifting of the ban on cryptocurrency imposed by the Central Bank of Nigeria (CBN) almost three years ago, citing security and fraud concerns. This game-changing move has set the stage for local startups to expand and innovate in the country’s evolving fintech landscape.

Yellow Card Financial Inc., a Pan-African exchange, wasted no time in announcing plans to apply for a license in Nigeria. Ogochukwu Umeokafor, Director of Product Management at Yellow Card, highlighted the importance of regulation in building trust and fostering business growth, and expressed the company’s desire to swiftly secure an exchange license, reports Bloomberg.

The suspension of the ban has reopened doors previously closed for crypto startups, many of which were sent reeling as the regulator yanked crypto firms off formal banking rails and the industry suffered a downturn, exacerbated by the collapse of major crypto players, most notably FTX whose demise was a major blow to the industry.

The regulatory clampdown and market slump brought many local crypto startups to their knees, triggering cutbacks. Some companies also shut down as the headwinds mounted (most notably Localbitcoins, Paxful, and Lazerpay), while others nixed their exchange operations to focus on use cases as in the case of Bundle.

Companies like Quidax, a notable player in Africa’s crypto space, went through a bumpy period following the ban and subsequent lull in the crypto markets globally, resorting to mass layoffs and downscaling. However, with the relaxation of restrictions, they’re offering free bank account transactions for a month—a move aimed at making crypto more accessible and driving adoption across Nigeria.

Other notable crypto founders have also expressed delight at the development on social media, including Ruth Isalema who leads Bitmama; a startup that recently acquired payments upstart Payday, as well as Yele Bademosi who steered Nestcoin through a turbulent period having lost much of its capital in the FTX debacle.

This reversal of the ban and issuance of crypto guidelines by the CBN isn’t just about following rules but about creating an environment where crypto can thrive, stakeholders reckon. For Yellow Card, regulation means attracting bigger investors and building user trust. This apparent legitimisation–if not endorsement–of the industry is likely to draw more interest from both investors and the public, offering a safer and regulated space to engage with crypto.

As the holiday season kicks in, Quidax’s gesture of free transactions is their way of celebrating the return of a favourable regulatory posture and giving back to customers. It’s a step toward making crypto more user-friendly and inviting more Nigerians into the crypto world, the company emphasised in a statement.

With Nigeria ranking high in crypto adoption, the change marks a promising new chapter. Startups like Yellow Card and Quidax are already on the move, ready to leverage this newfound freedom and steer Nigeria’s crypto industry toward growth and expansion.

Featurd Image Credits: Cryptonews