Crypto-Currency not Legal Tender in Nigeria - CBN

[lesor]

According to the  circular issued by the Central Bank of Nigeria (CBN) on January 12. 02 2017, to Banks and other financial institutions on virtual currency operations in Nigeria, the Bank wishes to reiterate that cryptocurrencies such
as Bitcoin,
Ripples
Monero
Litecoin
Dogecoin
Onecoin
etc
and Exchanges such as
NairaEx are not licensed or regulated by the CBN. Dealers and investors in any kind of crypto cuency in Nigeria are not protected by law. Virtual currencies are traded in exchange platforms that are unregulated, all over the world.


REASONS

Investors 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.

My Advice.
Be smart in your Cryptocurrency dealing your country is not in support of it,  if you are scammed $1m or whatever, no Banks will listen as far it's related to crypto currency.

REMENBER.
When making payments, do not fill Bitcoin or any coin in any description option on your bank app, you might get screwed by your bank.

Thank you.

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[teosanru]

Actually the thing is people already do take care about everything over the web still they do need some extra protection from government because sometimes there could be scams beyond your control or despite of your diligence. Such a stance of Nigerian Government is stopping a lot of people to enter in the cryptocurrencies but they are pretty correct on it because reality is most of the people will rush towards their banks if some scam happens and bank would never be able to trace it because the money is going somewhere beyond their control. Infact this is why people are still afraid of entering into crypto because they cannot held anyone accountable for anything that happens to them. Almost all banks have issued such circulars from time to time.

[lesor]

Actually the thing is people already do take care about everything over the web still they do need some extra protection from government because sometimes there could be scams beyond your control or despite of your diligence. Such a stance of Nigerian Government is stopping a lot of people to enter in the cryptocurrencies but they are pretty correct on it because reality is most of the people will rush towards their banks if some scam happens and bank would never be able to trace it because the money is going somewhere beyond their control. Infact this is why people are still afraid of entering into crypto because they cannot held anyone accountable for anything that happens to them. Almost all banks have issued such circulars from time to time.

Crypto world is like signing  a  death warrant ,immediately you enter you are on your own,  the Government cannot save you, there are so many mistakes on blockchain, heard so many people receiving huge bitcoin to their wallet by mistake, the funniest thing is that you can't retrieve it,  unless a good Samaritan return them back to you, i misplaced my Steller wallet key with potential token in it I could not retrieve till date.

[gentlemand]

Crypto world is like signing  a  death warrant ,immediately you enter you are on your own,  the Government cannot save you, there are so many mistakes on blockchain, heard so many people receiving huge bitcoin to their wallet by mistake, the funniest thing is that you can't retrieve it,  unless a good Samaritan return them back to you, i misplaced my Steller wallet key with potential token in it I could not retrieve till date.

And hopefully this was made clear to you when you got rolling. Many wallets won't let you proceed any further until you've proven that you've backed them up. It's the early days still and that's just how it is.

I've always been aware of it and have always planned accordingly.

These central bank 'warnings' usually seem to be taken as some sort of attack by many crypto fans. In truth they're the facts and they're just raising awareness of what can happen.

[CryptoBry]

I understand that there is this deep impression among many Nigerians that all the scams which happened in the previous many months were connected to Bitcoin and other cryptocurrencies...they can still  fathom that those are just similar to any currencies that any program can use as the medium of exchange (or tool of entry). Scams are everywhere and if one scam is using the dollar it does not mean that the dollar is also another scam.

The government in Nigeria is just fearful that if they will recognize Bitcoin and the likes there will be a jump in the proliferation of scams. Well, it can be or it can be a false projection but one is sure whether the government is recognizing Bitcoin or not there will always be scams and they can also use the normal fiat money in the country.

However, with this current situation, I know that cryptocurrency is still booming in Nigeria as the government is not actively running after the users, hodlers and enthusiasts for cryptocurrency though it can be quite a difficult situation to be dealing with something that the government is frowning upon.

I am hoping that the time will come when Bitcoin and cryptocurrency will be taken up by the government and be given the classification it badly needs so that people can participate in one of the biggest innovation of mankind's history an opportunity no one should be deprived of experiencing.

[lesor]

Crypto world is like signing  a  death warrant ,immediately you enter you are on your own,  the Government cannot save you, there are so many mistakes on blockchain, heard so many people receiving huge bitcoin to their wallet by mistake, the funniest thing is that you can't retrieve it,  unless a good Samaritan return them back to you, i misplaced my Steller wallet key with potential token in it I could not retrieve till date.

And hopefully this was made clear to you when you got rolling. Many wallets won't let you proceed any further until you've proven that you've backed them up. It's the early days still and that's just how it is.

I've always been aware of it and have always planned accordingly.

These central bank 'warnings' usually seem to be taken as some sort of attack by many crypto fans. In truth they're the facts and they're just raising awareness of what can happen.

I've learnt my lessons I don't longer save my keys in my phone memory sometimes I misplaced phone, all my keys are saved online for quick and secured platform.

Thanks

[lesor]

I understand that there is this deep impression among many Nigerians that all the scams which happened in the previous many months were connected to Bitcoin and other cryptocurrencies...they can still  fathom that those are just similar to any currencies that any program can use as the medium of exchange (or tool of entry). Scams are everywhere and if one scam is using the dollar it does not mean that the dollar is also another scam.

The government in Nigeria is just fearful that if they will recognize Bitcoin and the likes there will be a jump in the proliferation of scams. Well, it can be or it can be a false projection but one is sure whether the government is recognizing Bitcoin or not there will always be scams and they can also use the normal fiat money in the country.

However, with this current situation, I know that cryptocurrency is still booming in Nigeria as the government is not actively running after the users, hodlers and enthusiasts for cryptocurrency though it can be quite a difficult situation to be dealing with something that the government is frowning upon.

I am hoping that the time will come when Bitcoin and cryptocurrency will be taken up by the government and be given the classification it badly needs so that people can participate in one of the biggest innovation of mankind's history an opportunity no one should be deprived of experiencing.

Their actions also pointed at our politicians who now see blockchain as a platform to hide millions stolen from federal government but trust me 70‰ of Nigerian are dealing in crypto currency not minding what the government thinks.

Nigeria government don't want to experience what Email did to post Office, people are beginning to save their money away from banks.

[Bttzed03]

A few months after they announced that......... Nigerian Central Bank Explores the Blockchain and Cryptocurrencies

Speaking at a recent cryptocurrency conference in Lagos, the central bank’s deputy director, Musa Jimoh acknowledged the central bank was softening its stance on digital currencies and saw it as a decentralised outlet for personal wealth that is free from interference and confiscation. He added,

“[The CNB] cannot stop the tide of waves generated by the blockchain technology and its derivatives. Currently, we have taken measures to create four departments in the institution that are looking forward to harmonise the white paper on cryptocurrency.”

[lesor]

A few months after they announced that......... Nigerian Central Bank Explores the Blockchain and Cryptocurrencies

Speaking at a recent cryptocurrency conference in Lagos, the central bank’s deputy director, Musa Jimoh acknowledged the central bank was softening its stance on digital currencies and saw it as a decentralised outlet for personal wealth that is free from interference and confiscation. He added,

“[The CNB] cannot stop the tide of waves generated by the blockchain technology and its derivatives. Currently, we have taken measures to create four departments in the institution that are looking forward to harmonise the white paper on cryptocurrency.”

Alot of confusion really,  I heard the National assembly want to adopt crypto currency in news the other day.

[Bttzed03]

~snip

Alot of confusion really,  I heard the National assembly want to adopt crypto currency in news the other day.

You can consider yourself lucky already that your statesmen are open to cryptocurrencies. That's not the case in some countries like India.

[gentlemand]

Alot of confusion really,  I heard the National assembly want to adopt crypto currency in news the other day.

There's a whole load of difference between 'blockchain' and a proper cryptocurrency. Everyone will go through the same stage of attempting to squeeze 'blockchain' to fit their own ends and existing set ups. All the while real cryptocurrencies will sail past them.

Some will wise up and find a way to make real crypto work for them and with them. Others will carry on down a dead end path.  

[lesor]

~snip

Alot of confusion really,  I heard the National assembly want to adopt crypto currency in news the other day.

You can consider yourself lucky already that your statesmen are open to cryptocurrencies. That's not the case in some countries like India.

Blockchain has no capital many countries believe it would disappear from the face of the earth..  I really thought India are into crypto

[Theb]

A country classifying cryptocurrencies as not a legal tender doesn't make illegal right away, some countries even classify it as legal tender so that they can limit what they can do with it like ban bank transactions related to it. Countries not classifying it as a legal tender would most likely classify it as a commodity like what the U.S. did so that they are also subject to other taxes. So even if the Nigerian government didn't recognize it as a legal tender it simply doesn't make it illegal to be used in that country, and basing from the news I have read there are no updates regarding a ban taking place. I know that Nigeria got struck by a big scam exit recently so this might be part of the decision why they don't recognize it as a legal tender, the citizens are even fortunate enough to have that decision rather than the ban I was expecting to happen.

[omone1]

Lesor can I have a link to this post or I see it as mere article? The Central Bank Governor of Nigeria "Godwin Emefiele" is a confused banker, he secretly employs the elite into CBN, and has no good clear plan for MSMEs in Nigeria. Commercial banks in Nigeria has one of the highest interest lending rate in the world and businesses are suffering due to non viable environment. He lacks the locus Sandi to criticize crypocurrency.

[jaocoincrypto18]

It is sad to know that another nation refused to adapt Crypto currency  but we can't blame them if the mind set of their government officials are all against the opportunities that Crypto can give. Hopefully that someday they will see the beauty of Bitcoin concepts as there is regulation that can be rely on for any doubts.

[uray]

Dealers and investors in any kind of crypto cuency in Nigeria are not protected by law.

In any market there are risks involved and i do not understand what these protections are when you are trading in other markets . Will they hold the market when there is a correction, the idea of protection by some heavily source is just a farce .

Virtual currencies are traded in exchange platforms that are unregulated, all over the world.

Stock exchanges started like this and it was private and then they had government regulations and there is still time for them to regulate the crypto exchanges.

[CryptoBry]

When making payments, do not fill Bitcoin or any coin in any description option on your bank app, you might get screwed by your bank.

This is a wise reminder to all of when dealing with banks and not just in Nigeria because even here in my country where Bitcoin and cryptocurrency is allowed and has not been declared as illegal there are still many big banks who, acting on their own and actually without any legal basis, prohibit their bank users to get involved with Bitcoin to the point that they really ask anybody found to be connected to cryptocurrency to close their account in the bank. The solution is don't ask don't tell they are not gonna be following you anyway.

Crypto world is like signing  a  death warrant, immediately you enter you are on your own,  the Government cannot save you, there are so many mistakes on blockchain, heard so many people receiving huge bitcoin to their wallet by mistake, the funniest thing is that you can't retrieve it,  unless a good Samaritan return them back to you, i misplaced my Stellar wallet key with potential token in it I could not retrieve till date.

Anybody here in cryptocurrency should learn one of the biggest lessons: Never ever lose your private keys otherwise you also lose the very assets you are protecting and nobody can do something about it. We don't have to become the victim of the best security feature of cryptocurrency. Of course, this can be just common sense but we people can sometimes be "stupid" and by 'we" that includes me.

Virtual currencies are traded in exchange platforms that are unregulated, all over the world.

Stock exchanges started like this and it was private and then they had government regulations and there is still time for them to regulate the crypto exchanges.
[/quote]

I think that this is inevitable especially when the industry has already got so big, government will be starting to intervene and impose regulations for different reasons. At least this can be a good compromise, they can regulate crypto exchanges while allowing digital assets to flourish in the market and intervening only when really needed like cases of scams or frauds.

[teosanru]

Actually the thing is people already do take care about everything over the web still they do need some extra protection from government because sometimes there could be scams beyond your control or despite of your diligence. Such a stance of Nigerian Government is stopping a lot of people to enter in the cryptocurrencies but they are pretty correct on it because reality is most of the people will rush towards their banks if some scam happens and bank would never be able to trace it because the money is going somewhere beyond their control. Infact this is why people are still afraid of entering into crypto because they cannot held anyone accountable for anything that happens to them. Almost all banks have issued such circulars from time to time.

Crypto world is like signing  a  death warrant ,immediately you enter you are on your own,  the Government cannot save you, there are so many mistakes on blockchain, heard so many people receiving huge bitcoin to their wallet by mistake, the funniest thing is that you can't retrieve it,  unless a good Samaritan return them back to you, i misplaced my Steller wallet key with potential token in it I could not retrieve till date.

It's nothing like a death warrant. It's just that you are own savior because governments generally don't bother to take you out of the mess which you yourself dived into despite of that I have seen a few countries taking certain actions even in case of cryptocurrencies but yes no one can obviously retrieve it. Moreover even if you find the culprit you will have to beat the shit out of him to get his private key which itself would be a cumbersome task. Unlike simple bank frauds in which accounts are sealed and governments seize the assets.

[magneto]

Not legal tender =/= illegal. Important distinction.

Gold is not legal tender. Shares in equity is not legal tender. Nor is wheat, corn, derivatives, etc. But they are all financial instruments or commodities nonetheless and absolutely no one says that they are illegal. Legal tender simply means that you can't be legally held liable if you settle a debt, public or private, with this piece of currency.

Don't get misled by headings or sensationalist reporting.

[Harlot]

I think this is only just their way of washing their hands after Satowallet pulled off an exit scam on their citizens. It's like their way of saying that they aren't interested in chasing the criminals who have victimized their citizens yet they don't declare the state of cryptocurrencies in their country as illegal. I wouldn't say that this is a good thing but they were lucky enough that they banned crypto right away just so these kinds of crime won't happen again. What would be better though if they just improved the regulations they have and have some kind of enforcement in the industry rather than declaring cryptocurrency as not a legal tender because it sends a different message to the majority of their citizens.