Yellow Card Exchange Seeks Expansion in Nigeria Post Cryptocurrency Ban Reversal

Yellow Card Exchange, a Pan-African cryptocurrency trading platform, is actively seeking licensing possibilities in Nigeria following the Central Bank of Nigeria’s historic move to lift the restriction on cryptocurrency transactions for banks. Yellow Card is putting itself in a position to take advantage of the first-mover advantage by pursuing license in order to dominate the African market.

Yellow Card, a significant player in Africa, has faced regulatory uncertainties, limiting its operations in Nigeria. This landscape is poised for transformation, as articulated by Ogochukwu Umeokafor, the exchange’s Director of Product Management. In a recent phone interview with Bloomberg, Ogochukwu expressed the company’s eagerness to operate in a regulated environment, stating, “We want a regulated environment because it’ll help the business move; it will help people have more confidence in doing business with us.”

Navigating Regulatory Processes with SEC

By starting the clearance procedure with the Nigerian Securities and Exchange Commission (SEC), Yellow Card Exchange has demonstrated initiative. But obstacles remained in the way, chief among them the requirement for a working business account, which was previously beyond the purview of the Central Bank of Nigeria’s regulations.

With the restriction lifted, Nigerian commercial banks can now create accounts for Virtual Assets Service Providers (VASPs), creating new growth opportunities for Yellow Card Exchange and other cryptocurrency trading platforms. The ability of cryptocurrency dealers to do business without worrying about asset confiscation represents a dramatic departure from the norm.

Nigeria is now the first apex bank in Africa to have its Central Bank Digital Currency (CBDC), the e-Naira, introduced by the Central Bank of Nigeria (CBN). This is a significant step forward. The October 2021 launch of the e-Naira is intended to improve financial inclusion, lower the cost of remittance transfers, and decrease the amount of informality in the economy. Its low use within the nation has forced the Nigerian government to look for outside help for redesign and promotion.

The regulatory landscape in Nigeria has undergone substantial changes. On December 22, 2023, the CBN reversed its February 2021 restriction on cryptocurrency transactions. Strict client KYC and anti-money laundering procedures are highlighted in the revised standards. Banks are still not allowed to keep, trade, or conduct business with virtual currencies even after the prohibition was lifted.

The CBN’s move fits into a larger plan to control the cryptocurrency market in Nigeria with the goal of regaining the nation’s prominence as an important center for cryptocurrency trading in Africa. The local blockchain sector has endorsed this action and encouraged the federal government of Nigeria to provide thorough and accommodative legislation.