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**Central Bank of Nigeria lifts ban on cryptocurrency transactions**

In a recent circular dated December 22, the Central Bank of Nigeria (CBN) announced that it has lifted the restrictions on Nigerian banks facilitating cryptocurrency transactions. This move comes after the ban on Nigerian banks aiding crypto transactions, which led to the dominance of peer-to-peer (P2P) merchants in the crypto market.

The lifting of the ban is expected to bring about a significant shift in the crypto ecosystem in Nigeria. The crypto community anticipates increased competition between crypto-fiat exchanges and P2P merchants as they vie for dominance in the market.

AI legalese decoder can assist in this situation by helping crypto businesses to navigate the regulatory landscape in Nigeria. It can decode complex legal jargon and provide clear insights into the regulatory requirements for startups and exchanges looking to operate in the country. This can help businesses understand the implications of the lifted ban and the potential challenges and opportunities that lie ahead.

Cointelegraph reached out to stakeholders in the local crypto ecosystem to gauge their response to the new development. Nathaniel Luz, co-founder and CMO of Flincap, expressed optimism about the lifting of the ban, stating that it is a positive signal for the industry. He believes that Nigeria is now more receptive to crypto businesses operating within its borders.

Luz also pointed out that with the ban lifted, institutional exchanges should prepare to enter the Nigerian market. Their absence during the ban allowed P2P trading to thrive, potentially overshadowing other crypto businesses. The competition between crypto-fiat exchanges and P2P merchants is expected to intensify as they seek to capture the largest share of the crypto P2P market in the world.

When asked about the potential hurdles posed by the requirements of registration with the Securities and Exchange Commission (SEC), Luz acknowledged that it could be challenging for startups to obtain the SEC license. However, he believes that this regulatory framework will ultimately benefit the crypto sector.

The lifting of the ban by the CBN marks a significant shift from its previous stance on cryptocurrency transactions. Earlier in 2021, the CBN had banned all regulated financial institutions from offering services to crypto exchanges. However, the recent circular acknowledges the growing global demand and adoption of crypto, prompting the reconsideration of the stringent restrictions imposed in the past.

This development is expected to open up new opportunities for crypto businesses in Nigeria, and AI legalese decoder can help them navigate the evolving regulatory landscape. By providing clear and concise interpretations of legal requirements, the tool can empower businesses to make informed decisions and thrive in the changing environment.

In summary, the lifting of the ban on cryptocurrency transactions by the CBN has sparked optimism within the Nigerian crypto community. It has set the stage for increased competition and growth in the crypto market, and AI legalese decoder can play a crucial role in helping businesses understand and adapt to the changing regulatory dynamics.

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