IlluMyFi

Nigeria's central bank, CBN, has put out new rules for cryptocurrency transactions, days after removing the ban on virtual asset transactions. Last week, the Central Bank of Nigeria relaxed its regulations, permitting virtual asset service providers, including cryptocurrency exchanges, to operate bank accounts, marking a major shift from its earlier ban. Now, the new guidelines prohibit cash withdrawals and issuance of third-party cheques from holders of crypto bank accounts. Business Post cited CBN circular, noting, "Except for settlement of a virtual/digital assets transaction which shall be done through a transfer to another designated account, the withdrawal shall be only through a managers' cheque or transfer to an account," Nigeria has finally stepped into the realm of digital assets after a heavy ban on transactions of cryptocurrency. The country potentially has the power to become a hub of digital transactions in the region, according to a Google trends analysis. The ban was imposed in 2021 after a bunch of people used cryptocurrencies to fund a nationwide protest in October 2020. However, the new guidelines by the country's central bank stem from the belief that "Nigeria can no longer afford to keep pushing digital assets underground, for obvious economic and security reasons." Earlier in May, Nigeria's Securities and Exchange Commission also started mulling digital rules to allow the listing of tokens. Despite the new sigh of relief in digital and virtual asset transactions in Nigeria, banks will still not be allowed to use cryptocurrencies for their personal use. The restrictions come in the wake of stricter regulatory measures globally. This is possibly to ensure that crypto-based transactions are not misused by Nigerians. CBN has also ordered financial institutions to not open or permit the operation of any account by any person to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the laid-down guidelines.

Sentiment

Bearish/Bullish

13.01.24 07:54

by coingape.com

Vanguard May Reconsider Bitcoin Stance, Analyst Suggests

Bloomberg analyst predicts Vanguard may shift its anti-Bitcoin stance amid market changes and the need for diverse portfolios. Vanguard, a renowned investment firm, is speculated to shift its longstanding anti-Bitcoin stance, according to insights from Bloomberg's senior analyst Eric Balchunas. Despite Vanguard's current direction, Balchunas hints at possibly reevaluating this policy in the foreseeable future, aligning with the firm's expanding advisory services and the need for diverse investment portfolios. Vanguard's current approach towards Bitcoin and cryptocurrencies remains firmly resistant. The firm has recently made headlines by restricting customer access to the newly introduced spot Bitcoin Exchange-Traded Funds (ETFs). This decision aligns with their past actions, notably removing Bitcoin futures ETFs from their platform. According to a Vanguard spokesperson, this move aligns with the company's core values, focusing on products and services catering to long-term investors' needs. This stance, however, has not gone without consequence. Recent reports indicate that some Vanguard customers have started transferring their funds to other firms, seeking investment opportunities in the burgeoning cryptocurrency market. Despite these developments, Vanguard continues to uphold its cautious approach towards digital assets, reflecting the cautious perspective of its founder, Jack Bogle, who in 2017 labeled Bitcoin as a "plague." While Vanguard maintains its conservative stance, Eric Balchunas of Bloomberg foresees a gradual change in the company's philosophy. Balchunas notes that the growing emphasis on wealth growth and the necessity for diversified investments could nudge Vanguard towards reconsidering alternative asset classes like Bitcoin and other cryptocurrencies. This shift, he suggests, would be a strategic move to broaden their advisory business and cater to an evolving investment landscape. Balchunas's perspective is noteworthy, given the increasing institutional interest in cryptocurrencies. This trend is seen in contrast to Vanguard's current trajectory, but it highlights the dynamic nature of investment strategies in response to market demands and opportunities. Intriguingly, Vanguard's investment portfolio presents a contrasting picture. Despite its skepticism towards cryptocurrencies, the firm has significantly invested in MicroStrategy shares. MicroStrategy, known for its substantial Bitcoin holdings, is a key crypto player. As of September 2023, Vanguard holds over 1 million shares in MicroStrategy, valued at approximately $547 million, making it the second-largest institutional shareholder with an 8.24% ownership share. This investment is particularly notable given MicroStrategy's status as the leading public holder of Bitcoin, with an estimated 190,000 BTC valued near $6 billion. Vanguard's substantial stake in a company deeply entrenched in cryptocurrency raises questions about its investment strategy and potential openness to digital assets.