Nigerian Banks To Close Accounts Involved with Crypto

[Yogee]

Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

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.

- https://www.cbn.gov.ng/Out/2021/CCD/Letter%20to%20All%20Banks%20on%20Crypto%20Currency.pdf

You should expect your accounts to be suspended soon if you've transacted with Binance Nigeria and other exchanges or custodial service using your bank account before. I hope you will find other ways to convert your cryptocurrencies to fiat and vice versa. Are there enough merchants that you can deal with P2P?

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[Fesatmas]

The inconsistency between the establishment of Binance Nigeria which has been officially established and that which has just been established will face Nigerian banks who are afraid of an exchange without connecting the bank. regulation. The government there should have mediated first, so that the time when the formation and establishment of Binance Nigeria was in line with the Bank there. there is a kind of cooperation that benefits both parties.

ahhh I really don't like central bank regulations, both in Nigeria and in Bangladesh, everyone always rejects the presence of bitcoin.

[palle11]

What is the prove of your information. I have clicked on the link you provided and it has not taken me to any where to see the exact information and the source. Maybe you can check your link if you have to put proper link.

[Charles-Tim]

...

I posted this on our local thread some hours ago, I thought it was fake news, but it is true as I read it from Punch.
https://bitcointalk.org/index.php?topic=5121680.msg56274188#msg56274188

This is becoming true, I have just checked punch, one of the most recognized news source in Nigeria.

https://punchng.com/cbn-orders-banks-to-close-crypto-currency-accounts/

The Central Bank has ordered banks and other financial institutions to identify persons and entities operating cryptocurrency exchanges and close all such accounts.

It stated that dealing with cryptocurrencies and facilitating payments through them are illegal in the country.

This was disclosed in a circular titled ‘Letter to all Deposit Money Banks, non-bank financial institutions and other financial institutions’ Friday.

The circular was signed by the Director of Banking Supervision, Bello Hassan; and the Director of Payments System Management Department.

It read, “The Central Bank of Nigeria circular of January 12, 2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned the Deposit Money Banks, non-bank financial institutions, other financial institutions and members of the public on the risk associated with transactions in cryptocurrency refers.

“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

“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.

“Please, note that breaches of this directive will attract severe regulatory sanctions.

[bekti3]

It turns out that not only in Bangladesh, Nigerian banks also took part in rejecting the exchange of cryptocurrency, I think that despite this refusal, there are parties who do not like the presence of cryptocurrency in their country. How long will this continue, they should have realized that with the exchange of cryptocurrency, it would be a freedom to carry out transactions between countries. yeah I know any Nigerian bank or any bank, never felt open to cryptocurrency.

[Charles-Tim]

It turns out that not only in Bangladesh, Nigerian banks also took part in rejecting the exchange of cryptocurrency, I think that despite this refusal, there are parties who do not like the presence of cryptocurrency in their country. How long will this continue, they should have realized that with the exchange of cryptocurrency, it would be a freedom to carry out transactions between countries. yeah I know any Nigerian bank or any bank, never felt open to cryptocurrency.

Nigeria has been a country with bad leadership from the onset, this is not surprising. When the largest Ponzi scheme that was carried out in South Africa turned out to be Ponzi, the South African government still looking for ways to regulate crypto not ban crypto, but Nigeria go for ban without any prior notice. I think Nigeria government still have internal agenda they do not disclose. The credit card monthly spending was reduced from over $5000 monthly to $100 monthly, this was because they are not producing enough goods for export and importing more, therefore inconvenienting Nigeria citizens, especially the average people that depends on such because the rich ones will see a way through. Now, that might be one of the reasons they ban crypto this time around but telling that it brings about criminality. Nigeria will also be Nigeria, the leaders will never think in the right direction, especially during this worst time ever Nigerians are especially since 2018.

[eaLiTy]

You should expect your accounts to be suspended soon if you've transacted with Binance Nigeria and other exchanges or custodial service using your bank account before. I hope you will find other ways to convert your cryptocurrencies to fiat and vice versa. Are there enough merchants that you can deal with P2P?

The best option is to start a new bank account with a different bank than you usually use to link your cryptocurrency exchanges, there are several sites that allow you to trade using P2P to Nigerian naira including Binance and i would say that it is the best option rather than getting your accounts in trouble. Just create a freelancing profile and if there are questions asked just identify them as project revenue and always pay your taxes to avoid any other legal troubles.

If you follow these then they are not going to identify these transactions as cryptocurrency related, always look for trusted users with verified profiles before carrying the P2P deal to avoid illegal sources;).

[CryptocurencyKing]

It almost feels like a crime to be a common man in a country where the political system is unfair to the citizens as Nigeria. Indians are doing it, Bangladash and now Nigeria has decided to join in. The same Nigeria that not too long ago where looking at ways of incorporating cryptocurrency into the federal reserve and possibly other blockchain technology. Its obvious what a country we are in when we are head by leaders that aren't thinking but depends on peoples opinion, the stakes in it for them and in all that, the common man doesn't have a say.

[fiulpro]

See the thing is , this already happened in India and you know what happened?
Nothing
I had a bank account overseas and therefore I was still able to trade like that and at the same time I do live somewhere else and if you know someone overseas then you will be able to trade.
_______________________
You will always have an opportunity to do p2p trading. Therefore don't worry much , have a wallet which doesn't have KYC because the next move would be them banning them or putting them to a halt.
_______________________
There are literally so many nigerian people with BTC and many of them are really happy with the cryptocurrencies and would like to get engaged in them too. So it won't be hard finding someone , just make a local group even before they ban those accounts this way you will have a backup plan.

[The Cryptovator]

I have to say the Nigerian central bank took a wrong decision at this time. As far as I knew Nigeria was a potential country for bitcoin adaption since many citizens were already involved with Bitcoin. Now they banning bank accounts related to Bitcoin transactions which will lead to illegal use of Bitcoin. I don't think those peoples already involved with Bitcoin they can leave it. Same here in my country, central bank ban Bitcoin but citizens are using it illegally, as a result, the government losing accumulate taxes from them. The same thing will be happening in Nigeria, bitcoin users will find some way to trade their assets.

[so98nn]

I think Nigerian government should reconsider their decision against the crypto currency use. Nigeria which seems to be underdeveloped country, must adopt the new ways of investment, transactions and banking ways.

I am very very surprised to see this letter from the central authority. What they were thinking in the first place surprises to me.

If they are struggling from tax recoveries then they should impose strict regulations on bitcoin use in “different” ways. For example, impose regular income tax slots on the bitcoin use. This can be traced by banks when Nigerian pips use exchange to withdraw money into their bank accounts. This amount then can be taxed as regular income.

This way Nigerian government can get enough taxes too and they won’t have to leave the modest ways of transactions.

[noormcs5]

It turns out that not only in Bangladesh, Nigerian banks also took part in rejecting the exchange of cryptocurrency, I think that despite this refusal, there are parties who do not like the presence of cryptocurrency in their country. How long will this continue, they should have realized that with the exchange of cryptocurrency, it would be a freedom to carry out transactions between countries. yeah I know any Nigerian bank or any bank, never felt open to cryptocurrency.

This is happening is many other countries too like i heard that Indian government is also bringing an ordinance to ban the private crypto currencies and maybe introduce their own centralize digital currency.

Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

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.

- https://www.cbn.gov.ng/Out/2021/CCD/Letter%20to%20All%20Banks%20on%20Crypto%20Currency.pdf

You should expect your accounts to be suspended soon if you've transacted with Binance Nigeria and other exchanges or custodial service using your bank account before. I hope you will find other ways to convert your cryptocurrencies to fiat and vice versa. Are there enough merchants that you can deal with P2P?

You should use any P2P exchange for this purpose and also when transferring money in your bank account, ask the sender to not state any word like bitcoin in the description/purpose of payment.

[Princejebs]

I have to say the Nigerian central bank took a wrong decision at this time. As far as I knew Nigeria was a potential country for bitcoin adaption since many citizens were already involved with Bitcoin. Now they banning bank accounts related to Bitcoin transactions which will lead to illegal use of Bitcoin. I don't think those peoples already involved with Bitcoin they can leave it. Same here in my country, central bank ban Bitcoin but citizens are using it illegally, as a result, the government losing accumulate taxes from them. The same thing will be happening in Nigeria, bitcoin users will find some way to trade their assets.

Very useless government with a shallow and 1980s mind set. Since there is huge demand of crypto by the citizens, instead of the government to use the opportunity to create platforms or more secure platforms and AML for institutional investors and earn tax in return, they are damaging the future of the nation.
I don't blame, I blame the power of the people because they chose them. But the fact is I have been here 3 years counting and crypto is here to stay. We aren't going anywhere soon.

[dothebeats]

Nigeria has been pretty aggressive in bitcoin and cryptocurrency as of late, and I cannot understand why. There are tons of traders in Nigeria right now prompting Binance to open up a market to cater the demand, and the government could easily capitalize on this fact by providing ample regulations to sustain the scene and tax the crypto sale proceedings and related profit just like what other countries did. Most countries look up to Nigeria as one of the countries in Africa that is ripe for an economic boost, however if they keep on shutting down opportunities that come knocking into their front door, they'll just keep getting back from square 1 and the number of poverty-stricken citizens would just grow.

[Tstar]

Oh, that doesn't sound good! From what I know, cryptocurrencies are of the few legit ways to make decent money there.

What about VISA crypto-debit cards? Do they still work in Nigeria?

[stompix]

I posted this on our local thread some hours ago, I thought it was fake news, but it is true as I read it from Punch.
https://bitcointalk.org/index.php?topic=5121680.msg56274188#msg56274188

From my experience every time this kind of news appears there is a lot of misunderstanding from it, so assuming you're more familiar with the matter of what does this circular really means and what status has a directive from CBN? Is it legally binding?

Has the CBN the power to issue a control on a financial institution or there must be first a case created by a prosecutor of another authority that is acting like a watchdog monitoring the banks with a case of wrongdoing against a bank or a financial institution for not implementing those restrictions?  I doubt any central bank can start and control every single account in the country so there must be a trigger somewhere, a branch of either the cybercrime squad or whatever kind of policy you have there, so, if you manage to keep a low profile you might get away.

For the exchanges, it's probably game over but I think small p2p trade can still go on.
ATMs are done for also this form right? They probably are classified as OFI, no?

Same here in my country, central bank ban Bitcoin but citizens are using it illegally, as a result, the government losing accumulate taxes from them. The same thing will be happening in Nigeria, bitcoin users will find some way to trade their assets.

I don't know the situation in your country but the ban is the same as this one?
If so, you should share a few tips on how one can avoid getting his account closed or how it can deal exchange without touching a financial institution. From my point of view is either rely on face2face or a foreign money transmitter that doesn't give a damn about regulation in Nigeria.
From what I can see Mpesa will no longer be an option either.

Most countries look up to Nigeria as one of the countries in Africa that is ripe for an economic boost, however if they keep on shutting down opportunities that come knocking into their front door

I find it ironic that every damn country that was cheered as the next Bitcoin heaven and source of explosive growth is turning out to be more of an enemy, Venezuela is implementing state-controlled wallets, India is thinking of a ban, Nigeria is doing so right now, which one is left?

[tabas]

Edited: I had to add this picture. It best captures this moment.

Haha you got me on this picture.

This is happening is many other countries too like i heard that Indian government is also bringing an ordinance to ban the private crypto currencies and maybe introduce their own centralize digital currency.

Although I still don't think that they are many. But it's not a good news whenever a country starts to do the same. In US, they won't ban crypto but they're about to regulate wallets. And once it happens, these countries might do the same and will take advantage of it. They can ban if they want to but their citizens will still look for a way to buy, hold and sell. It's also possible that they'll have their own CBDC but if they'll do that, they should remove the ban and sanction for bank accounts that are related to cryptocurrencies.

[Lorence.xD]

Nigeria has been pretty aggressive in bitcoin and cryptocurrency as of late, and I cannot understand why. There are tons of traders in Nigeria right now prompting Binance to open up a market to cater the demand, and the government could easily capitalize on this fact by providing ample regulations to sustain the scene and tax the crypto sale proceedings and related profit just like what other countries did. Most countries look up to Nigeria as one of the countries in Africa that is ripe for an economic boost, however if they keep on shutting down opportunities that come knocking into their front door, they'll just keep getting back from square 1 and the number of poverty-stricken citizens would just grow.

The protest is what I am suspecting in the first place. I am surprised because AFAIK there is around 10% or higher cryptocurrency user in the country, putting regulation as the quote above says is the best way to go for anything involving crypto, I believe that this is a political play because you can easily make profit out of the crypto population in your country by putting regulations and taxes, either bankers are involved in this, or a government official that fears that crypto is giving people power or a government official being lobbied by bankers.

[bits4books]

Perhaps this is not a very correct opinion - but does it really matter what happens in Nigeria? I am sure that there are much more important problems of a different kind than the availability and legality of cryptocurrencies. Don't you care? Why are you interested in what is happening on another continent where the development is at the level of the 20th century but only with access to the Internet?

[virasog]

Perhaps this is not a very correct opinion - but does it really matter what happens in Nigeria? I am sure that there are much more important problems of a different kind than the availability and legality of cryptocurrencies. Don't you care? Why are you interested in what is happening on another continent where the development is at the level of the 20th century but only with access to the Internet?

There maybe many problems in the country but if you discourage the use of crypto in the country, this will lead to further decline of the economy of the country. Nigeria could make crypto legal which can help their country grow but usually the government officials does not recognize this opportunity.