Yellow Card crypto exchange applies for licence to operate in Nigeria as CBN lifts ban

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.

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.