Pan-African Exchange Yellow Card to Apply for Nigerian License
Pan-African cryptocurrency exchange Yellow Card Financial has announced its plans to apply for a license in Nigeria following the lifting of the country’s cryptocurrency ban. The ban, which was imposed in 2021, prohibited financial institutions from transacting or operating cryptocurrency exchanges. Now that the ban has been lifted, Yellow Card aims to establish a regulated presence in Nigeria. The director of product management at Yellow Card, Ogochukwu Umeokafor, emphasized the importance of operating in a regulated environment to enhance business operations and foster greater confidence among customers.
Nigeria Overturns Crypto Ban Paving the Way for Yellow Card
Yellow Card, which currently operates in Nigeria and over 15 other African countries, had already initiated discussions with Nigeria’s Securities and Exchange Commission (SEC) regarding operating a cryptocurrency exchange. The SEC invited applications for licenses from issuers, custodians of digital assets, and exchanges. However, Yellow Card faced an obstacle in the form of needing a bank account to apply for a Virtual Asset Service Provider license, which was not possible under the previous ban. In a circular issued by the Central Bank of Nigeria, banks were directed to open accounts for crypto firms, overturning the previous order that had mandated the closure of accounts associated with cryptocurrencies.
Nigeria Sees Increased Crypto Adoption
Nigeria has witnessed significant cryptocurrency adoption due to the population’s desire to hedge against the weakening local currency. The Nigerian naira has depreciated by almost 49% this year, leading residents to seek crypto assets as a store of value. A recent survey revealed that Nigeria is the most crypto-savvy nation ahead of the United States and European countries. The survey showed that 99% of Nigerians are aware of cryptocurrencies and 70% understand the value, operations, and fundamentals of blockchain technology. Nigerians have turned to cryptocurrency as a hedge against inflation after the poor performance of the naira coupled with double-digit inflation.
Hot Take: Yellow Card Seizes Opportunity in Nigeria
Pan-African cryptocurrency exchange Yellow Card Financial is taking advantage of the lifting of Nigeria’s cryptocurrency ban by applying for a license in the country. The ban, which prohibited financial institutions from transacting or operating cryptocurrency exchanges, has now been overturned. Yellow Card aims to establish a regulated presence in Nigeria to enhance business operations and build customer confidence. With its discussions already underway with Nigeria’s Securities and Exchange Commission, Yellow Card is well-positioned to navigate the licensing process. This move comes as Nigeria experiences increased crypto adoption due to the weakening local currency and rising inflation, making cryptocurrencies an attractive store of value for Nigerians.
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