BlockLex Consulting

18/01/2024

🇳🇬 CENTRAL BANK OF NIGERIA'S NEW CRYPTOCURRENCY GUIDELINES: KEY HIGHLIGHTS

The Central Bank of Nigeria, drawing on its powers in the Central Bank Act as well as the Banks and Other Financial Institutions Act, issued guidelines on cryptocurrency integration within the Nigerian financial. Dated December 22, 2023, this circular supersedes prior directives, signifying the arrival of the long awaited dawn crypto entities in the country.

📜 HIGHLIGHTS

RATIONALE FOR CHANGE

The circular, signed by Haruna B. Mustapha, outlines the historical concerns surrounding cryptocurrencies, emphasizing the risks associated with money laundering and terrorist financing. A global shift towards regulating cryptocurrencies motivated the Central Bank's reconsideration.

AUTHORIZED TRANSACTIONS

Commercial and Merchant Banks now have the green light to establish bank accounts for Virtual Assets Service Providers, engaging in activities such as fiat-to-digital asset exchanges, digital asset trading, and custody services.

INTRODUCTION OF GUIDELINES

The Circular introduces the "Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers," defining "Digital Asset" and "Virtual Assets" to provide clarity on the regulatory landscape.

PERMISSIBLE ACTIVITIES

Financial Institutions are permitted to engage in various activities, including opening designated bank accounts, providing settlement services, serving as channels for FX flows, and other activities subject to periodic approval by the CBN.

Note that while Virtual Assets Service Providers can now operate within the banking system, financial institutions are still prohibited from transacting in cryptocurrencies directly.

APPROVAL PROCESS

Opening a bank account for a virtual assets service provider requires approval from a senior management staff, starting from the Assistant General Manager level and above.

DOCUMENTATION REQUIREMENTS

Documents required includes a valid operating license from the Securities and Exchange Commission, Corporate Affairs Commission forms, verifiable business addresses, and compliance with the "Rules on Issuance, Offering Platforms, and Custody of Digital Assets 2022."

RESTRICTIONS

The account's usage is restricted exclusively to transactions involving Digital and Virtual Assets, with prohibitions on cash withdrawals, third-party cheque clearances, and specific guidelines for settlements.

REGULATORY AUTHORITY ACKNOWLEDGMENT

This strategic shift recognizes the Securities and Exchange Commission (SEC) as the rightful authority to regulate the cryptocurrency space, while the Central Bank maintains regulatory oversight for related transactions within the financial sector.

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25/09/2023

Happy Birthday to the Principal partner, Mr Kue Barinor Paul ,Esq May your special day be as refreshing and delightful as the fragrance you bring to our workplace.

Wishing you continued success and happiness in the year ahead from all of us at Blocklex

01/09/2023

https://youtu.be/1IP0JMfNClQ

In a surprising turn of events, the SEC has shifted its stance on cryptocurrencies. Previously, the Commission asserted that all cryptocurrencies were inhere...

21/08/2023

https://youtu.be/-ArYp9QXlSM

Welcome to BlocklexTv! Join us as we break down a recent development in the FTX Chapter 11 Bankruptcy proceeding.📢 Introduction: We begin by taking you back...

02/08/2023

📅 Welcome to August 📅

As we embrace the warmth of August, we extend our heartfelt appreciation for your continued trust and support. This month, we strive to pursue excellence in providing top-notch legal services, ensuring your needs are met with utmost professionalism and dedication.

Join us as we forge ahead in one accord, navigating legal challenges and opportunities with confidence. Our team is committed to assisting you in every step of the way, offering tailored solutions and insights that propel your success.

Wishing you a prosperous and fulfilling August. Thank you for entrusting Blocklex Consulting as your legal ally. 😊

14/07/2023

On June 9th, 2023, the Nigeria Securities and Exchange Commission (SEC) issued a circular declaring the activities of Binance Nigeria Limited as illegal. The SEC claimed that the company was not registered with it and is therefore not regulated by the Commission. It warned that users within the country who are interacting with the company's cryptocurrency platform and website do so at their risk.

However, in a twist of development, it has been revealed that the company Binance Nigeria Limited as addressed in the circular by the SEC is not affiliated with the Binance International platform and has become, in fact, inactive for years in the records of the Corporate Affairs Commission.

In this video, we will discuss the SEC's circular and the implications of this development for Nigerian cryptocurrency users. We will also explore the relationship between Binance Nigeria Limited and Binance International.

Watch the video to learn more.

On June 9th, 2023, the Nigeria Securities and Exchange Commission (SEC) issued a circular declaring the activities of Binance Nigeria Limited as illegal. The...

03/07/2023

Embrace a Month of Opportunities and Growth!

Dear High Value Clients,

July marks the beginning of fresh possibilities, promising opportunities, and exciting adventures. It spells the beginning of the better half of 2023.

This month, we urge you to embrace the spirit of growth and innovation. It's a time to set new goals, challenge yourself for great milestones, and push beyond your limits. As we navigate the ever-changing landscape of the digital economy and emerging technologies, let us continue to harness our collective strengths and expertise to make remarkable strides in the world surrounding us.

July presents us with a chance to reflect on our achievements so far and use them as a foundation for future success. It's a time to celebrate the milestones we've reached, the lessons we've learned, and the connections we've forged. Let's carry this momentum and enthusiasm into the days ahead.

We encourage you to explore new horizons, think outside the box, and approach challenges with a fresh perspective. Seize every opportunity to innovate, collaborate, so as to exceed expectations. Together, we can achieve remarkable outcomes and make a positive impacts.

May July be a month filled with exciting breakthroughs, meaningful connections, and remarkable achievements. Let's support each other, celebrate our successes, and embrace the journey ahead.

Wishing you a joyful and prosperous July
Warm regards,

BlockLex Consulting

28/06/2023

Eid Mubarak!

Blocklex Consulting wishes you and your families a blessed Eid-al-Adha. May this festival of sacrifice and devotion bring you joy and unity. We appreciate your continued support and remain dedicated to delivering exceptional service. May this Eid inspire us to make a positive impact and embrace new opportunities, Ameen.

Warm regards

BlockLex Consulting

27/06/2023

"Social media handles contain vast amounts of unrelated information and opinions, most of which are irrelevant to the prevention of money laundering as proposed by the CBN. It is not enough to want to prevent money laundering on a large scale. There must be a specific threat or commission of a crime to warrant legitimate monitoring of those suspected to be connected to the crime."

https://blocklex.tech/blog/2023/06/27/safeguarding-personal-data-a-critical-examination-of-cbn-customer-due-diligence-regulations-2023/

15/06/2023

In what appears to be a regulatory reawakening, the Nigerian Securities and Exchange Commission has declared the operations of Binance Nigeria Limited as illegal.

Check out Blocklex 's blog post on the development below 👇

Also share with your contacts

UncategorizedJune 15, 2023 SEC Declares Binance Nigeria Limited’s Operations Illegal Introduction In a recent circular issued on June 9, 2023, the Securities and Exchange Commission (SEC) of Nigeria declared the operations of Binance Nigeria Limited illegal. The circular highlights that Binance Ni...

29/05/2023

"The Nigerian government has acknowledged that cryptocurrencies, including Bitcoin, Ethereum, and others, have the potential to catalyze blockchain adoption... This recognition lays the groundwork for the official legalization of cryptocurrencies in Nigeria and the subsequent development of comprehensive regulations that will follow."

INTRODUCTION

17/05/2023

By Virtue of the Eight Version of the Directive on Administrative Cooperation (DAC8) just approved by European Council, all Crypto Assets Service Providers targeting the European market now owes a tax reporting obligation to the Union. This is irrespective of where you operate from. These Directives will, invariably, apply to CASP incorporated in Nigeria and other countries who are offering services to persons residing in Europe.

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