Cryptocurrency Trading Bans in Nigeria By The Central Bank (CBN)
Cryptocurrency Trading Bans In Nigeria:
Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) and other financial institutions to close accounts of persons who are using their systems for cryptocurrency trading.
A cryptocurrency which is a virtual digital currency that increases or decreases during the fluctuation in market forces has gained traction globally and lately, most young people in Nigeria and have been investing in the cryptocurrency world, buying and selling bitcoin, and making a profit for themselves through trading with bitcoin.
In a statement signed by Bello Hassan, Director of Banking Supervision; and Musa Jimoh, Director of Payments System Management Department, the CBN said: “Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for a cryptocurrency exchange is prohibited.
CBN Governor, Godwin Emefiele. [Thisdaylive]
“Accordingly, all DMBs, NBFIs, and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”
The CBN also declared that breaches of its directive will attract severe regulatory sanctions. which shows how bad CBN never liked cryptocurrency.
This is not actually the first time that the CBN would be showing its dislikes towards crypto trading. The apex bank, in 2018, issued a circular to say cryptocurrencies are not legal tenders in Nigeria.
“For the avoidance of doubt, dealers and investors in any kind of cryptocurrency in Nigeria are not protected by law. Virtual currencies are traded in exchange platforms that are unregulated, all over the world.
The Bitcoin (NDTV-Gadgets 360)
“Consumers may therefore lose their money without any legal redress in the event these exchangers collapse or close business.
“Members of the public are hereby warned that virtual currencies are not legal tender in Nigeria. Accordingly, we wish to caution all and sundry on the risks inherent in such activities,” the 2018 statement had read.
Other types of cryptocurrencies are Ethereum, Litecoin, Polkadot, Chainlink, Binance coin, Tether, etc.