A Pan-African exchange, Yellow Card Financial Inc., is poised to swiftly apply for a license in Nigeria following the recent lifting of the cryptocurrency ban imposed by the country’s central bank in 2021.
Ogochukwu Umeokafor, the Director of Product Management at Yellow Card, expressed eagerness to seize this opportunity, stating, “Wou’ve waited for something and it has come true, and we’ll jump on it immediately.”
Highlighting the importance of operating in a regulated environment, Umeokafor emphasized that regulatory clarity would enhance business operations and instill greater confidence among users. Yellow Card, focusing on Africa and currently operational in Nigeria and over 15 other countries on the continent, had already engaged in discussions with Nigeria’s Securities and Exchange Commission regarding a crypto exchange license.
The initial hurdle faced by Yellow Card was the requirement for a bank account to apply for a Virtual Asset Service Provider license. This obstacle has now been addressed with the Central Bank of Nigeria’s recent circular instructing lenders to open accounts for crypto firms. The circular reversed a previous order that prohibited deposit-taking financial institutions from engaging in transactions with or operating cryptocurrency exchanges.
Umeokafor reflected on the uncertainties caused by the earlier Central Bank order, which aimed to curb money laundering and terrorism financing. The lack of access to bank accounts forced Yellow Card to explore alternative methods to sustain its business. With the recent developments, Yellow Card is now optimistic about resuming its operations with renewed stability.
Nigeria stands out with one of the highest rates of cryptocurrency adoption globally, second only to India. This surge is driven by residents seeking crypto assets as a hedge against a currency that has experienced a nearly 49% depreciation this year. The depreciation followed President Bola Tinubu’s decision to relax rules in an effort to narrow the gap between the official and unauthorized street exchange rates.
