Nigerian Banks To Close Accounts Involved with Crypto

[mezzaluna]

This was a major challenge Nigeria's Crypto community faced which forced crypto traders to revert to the old way of buying and selling commonly known as "Peer to Peer (P2P)".

Several popular exchanges have implemented the P2P feature on their exchange. A typical example is Quidax which launched it's P2P platform weeks back.

Details can be found here : https://blog.quidax.com/make-way-p2p-is-live-on-quidax/

The problem with P2P is that you will be flooded with scammers, at least during the initial phases. When I was trading in Localbitcoins during my earlier days, I faced a lot of issues due to this. It takes a few months for a vendor to build up a good feedback score and earn a good reputation. During this time, a lot of people are going to get conned by the scammers. And the fact that cryptocurrency is in a grey area in Nigeria will make matters more complicated.

Binance could actually help a lot with that P2P transactions. Their current platform is a sure way on how people would not get scammed. People are only required to do transactions once they do their verification and set up multiple verification. They are only also required to do one account and most people are not even eligible to do transactions without going thru this sure way to confirm that the person doing that transaction is real.

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[Koro-Sensei]

This is probably the most absurd idea a bank should ever do unless these transactions are used by criminals. These will further force nigerians to have P2P transactions.

[fullhdpixel]

Binance could actually help a lot with that P2P transactions. Their current platform is a sure way on how people would not get scammed. People are only required to do transactions once they do their verification and set up multiple verification. They are only also required to do one account and most people are not even eligible to do transactions without going thru this sure way to confirm that the person doing that transaction is real.

Well, you might be right, but not in countries like in Nigeria where anyone can just walk in and disappear lol.
If you’re going to be doing business with a random someone in countries like Nigeria, you should at least be careful to avoid getting scammed.

Let’s imagine you get scammed by the person, and okay, you know who they are, will you go after them yourself? Who are you going to call, the police? In a country where it’s illegal to trade crypto? Nah, people have to be careful. Although I saw someone post that people can now trade crypto, that their central bank has lifted the ban, but I don’t know how true that is.

[Mahanton]

Binance could actually help a lot with that P2P transactions. Their current platform is a sure way on how people would not get scammed. People are only required to do transactions once they do their verification and set up multiple verification. They are only also required to do one account and most people are not even eligible to do transactions without going thru this sure way to confirm that the person doing that transaction is real.

Well, you might be right, but not in countries like in Nigeria where anyone can just walk in and disappear lol.
If you’re going to be doing business with a random someone in countries like Nigeria, you should at least be careful to avoid getting scammed.

Let’s imagine you get scammed by the person, and okay, you know who they are, will you go after them yourself? Who are you going to call, the police? In a country where it’s illegal to trade crypto? Nah, people have to be careful. Although I saw someone post that people can now trade crypto, that their central bank has lifted the ban, but I don’t know how true that is.

Yes, they are indeed working to lift that crypto ban.

Nigeria’s securities market regulator is working with the country’s central bank to forge a way forward for the embattled industry.
Source: https://coingeek.com/nigeria-sec-working-with-central-bank-to-lift-digital-currency-ban/

This is a good new for those people who lived there involved with crypto.

[Vishnu.Reang]

Yes, they are indeed working to lift that crypto ban.

Nigeria’s securities market regulator is working with the country’s central bank to forge a way forward for the embattled industry.
Source: https://coingeek.com/nigeria-sec-working-with-central-bank-to-lift-digital-currency-ban/

This is a good new for those people who lived there involved with crypto.

This is good news for the cryptocurrency users in Nigeria and should be resolved soon enough. Since cryptocurrency is not illegal in Nigeria, it doesn't make any sense to close down the bank accounts that are indulging in Bitcoin trading. Either there is a communication gap between the bank officials and the government, or the bureaucrats and politicians don't agree on how to deal with cryptocurrency. And from what I have seen from India, the bureaucrats are the biggest obstacle.

[Obito]

This is probably the most absurd idea a bank should ever do unless these transactions are used by criminals. These will further force nigerians to have P2P transactions.

The absurd thing is that money laundering pass under the nose of these banks and they enjoy the benefits of using the bank without worry because they don't use cryptocurrency. I don't know if they are are aware that they are hypocritical or they aren't because it is the tradition in their industry.

[pinggoki]

This is probably the most absurd idea a bank should ever do unless these transactions are used by criminals. These will further force nigerians to have P2P transactions.

The absurd thing is that money laundering pass under the nose of these banks and they enjoy the benefits of using the bank without worry because they don't use cryptocurrency. I don't know if they are are aware that they are hypocritical or they aren't because it is the tradition in their industry.

There's no new about it. Africa has a very bad economic growth in which we can see it reflects on their leaders know that there is a lot Ponzi scheme that has started there and the bad thing here is that even their government don't know how to resolve it. There are so many money laundering issues that have been stated in that country and I would not be surprised that Africa is one of the poorest countries all over the world.

[(o)(o)ilikeboobs(o)(o)]

Banks do not have the right to close crypto-related accounts because this state does not allow it. Closing a bank account damages the interests of citizens of this country. I believe that the Nigerian bank's job will be over soon until the government enacts crypto regulations.

[awik p]

Banks do not have the right to close crypto-related accounts because this state does not allow it. Closing a bank account damages the interests of citizens of this country. I believe that the Nigerian bank's job will be over soon until the government enacts crypto regulations.

for the implementation of the crypto, I don't think it's as easy as turning your palm. especially from the government that wants to shift fiat. we know that the applicable system is different, so it needs a lot of consideration from the government

[Xinarae*]

Banks do not have the right to close crypto-related accounts because this state does not allow it. Closing a bank account damages the interests of citizens of this country. I believe that the Nigerian bank's job will be over soon until the government enacts crypto regulations.

for the implementation of the crypto, I don't think it's as easy as turning your palm. especially from the government that wants to shift fiat. we know that the applicable system is different, so it needs a lot of consideration from the government

Yes the government needs to consider because if nigerian banks close the accounts associated with crypto the nigerian people who use crypto will suffer a lot. Using cryptocurrencies has helped people avoid conversions making them somewhat easier but much more beneficial as a way to send money. It will take a long time to replace the banks because the banks think fiat currency is more profitable.

[Ausgewielt]

In my opinion Nigerian Banks made a bad decision. Rather than think about the negative things I think it will be better if they more focus on the positive things that their citizens can get from bitcoin and blockchain technology. I think this technology can improve and help a lot for their economic activity. They can make their own cryptocurrency and company related to it, so they can open more job vacancies. I hope they don't refuse to moving forward.

[zanezane]

In my opinion Nigerian Banks made a bad decision. Rather than think about the negative things I think it will be better if they more focus on the positive things that their citizens can get from bitcoin and blockchain technology. I think this technology can improve and help a lot for their economic activity. They can make their own cryptocurrency and company related to it, so they can open more job vacancies. I hope they don't refuse to moving forward.

For them, it is not a bad decision because they are going to benefit from doing this kind of thing, they want control and they can find control with this one so they did it. Remember that crypto gives freedom so banks don't like it because they are going to be set aside. This will be temporary because they can't reject progress forever.

[bosede1]

This is not a scam, it is true and there is some account that is actually some accounts that were close, suspended all in the name of crypto. Many people are still scared due to all this regulation in Nigeria but for some of us we need to do what we need to do

[cute nmp]

I heard the news in the afternoon but though it was lie until I saw it on the network news before believing it .Not any specific good reason behind the regulation at all hope it will be temporary one because many people who are using crytocurrency will be affected by it including me.I have been into cryto for five years and will continue to be for as many years as possible no regulation will make me abandon it but we still hope for the best and for our government to look into the matter again and do something about it.

[jinxing]

some countries cannot legalize cryptocurrency to facilitate payments, but they can still release it by not eliminating the function of the local currency used. I think Nigeria is very unfair to take action to ban cryptocurrencies, they don't realize cryptocurrencies can provide promising business opportunities for their citizens.

[oHnK]

I don't know what the Nigerian government was so worried about that it had to ban all transactions in crypto.  Whereas if you look further, rather than prohibiting and the people still transacting in silence, then this is far more detrimental to the state.  They can benefit from legalized ceypto transactions.  Such as the benefits from the tax side for state revenue and control over transactions that occur in their country.  these are some of the big points their government should look at.

[geegaw]

I don't know what the Nigerian government was so worried about that it had to ban all transactions in crypto.  Whereas if you look further, rather than prohibiting and the people still transacting in silence, then this is far more detrimental to the state.  They can benefit from legalized ceypto transactions.  Such as the benefits from the tax side for state revenue and control over transactions that occur in their country.  these are some of the big points their government should look at.

Maybe you are thinking wrong about this, they cannot benefit because crypto tax is a source of income that they can hardly earn, covert and anonymity activities have concealed all the money shipped each day, if legalized, this would only be at a disadvantage for them while it would help more people evade taxes. The Nigerian banks understand the extent of the problem and they make such decisions to partially limit criminals to take advantage of this.

[nakamura12]

In my opinion, Nigerian government wants nigerian people to pay taxes by making exchange partner with the exchange so that they can earn. Even in my country where I use an exchange will decrease the amount of bitcoin you will receive when you sell your bitcoin and the price of bitcoin when you buy is the same as the current price e.g buy price - $60k and sell price - below $60k to which is serve taxes since bitcoin is not centralized. Let's hope that news won't happen.

[oHnK]

I don't know what the Nigerian government was so worried about that it had to ban all transactions in crypto.  Whereas if you look further, rather than prohibiting and the people still transacting in silence, then this is far more detrimental to the state.  They can benefit from legalized ceypto transactions.  Such as the benefits from the tax side for state revenue and control over transactions that occur in their country.  these are some of the big points their government should look at.

Maybe you are thinking wrong about this, they cannot benefit because crypto tax is a source of income that they can hardly earn, covert and anonymity activities have concealed all the money shipped each day, if legalized, this would only be at a disadvantage for them while it would help more people evade taxes. The Nigerian banks understand the extent of the problem and they make such decisions to partially limit criminals to take advantage of this.

If they are able to block the accounts of customers who are involved with crypto, then it will be very possible that they can create exchanges in their countries so as to create a mutually beneficial climate for both. If a transaction via an exchanger is allowed, the state can collect taxes on the transaction. Why do you say you can't, maybe you are the one who wrongly responded to my previous opinion. Instead of the state blocking crypto transactions and resulting in p2p actions that increase and cause losses to the state. So legalizing it is the best way in my opinion.

[nicecrypto]

I don't know what the Nigerian government was so worried about that it had to ban all transactions in crypto.  Whereas if you look further, rather than prohibiting and the people still transacting in silence, then this is far more detrimental to the state.  They can benefit from legalized ceypto transactions.  Such as the benefits from the tax side for state revenue and control over transactions that occur in their country.  these are some of the big points their government should look at.

Maybe you are thinking wrong about this, they cannot benefit because crypto tax is a source of income that they can hardly earn, covert and anonymity activities have concealed all the money shipped each day, if legalized, this would only be at a disadvantage for them while it would help more people evade taxes. The Nigerian banks understand the extent of the problem and they make such decisions to partially limit criminals to take advantage of this.

So from your explanation now is it safe to say that before this pronouncement by the Government, people where evading taxes since crypto was still been traded then? You even said it yourself, if "covert and anonymity activities have concealed all the money shipped each day" then crypto trading is not the problem because it is already happening with out crypto.
To me the whole thing about this Ban on crypto related Bank transactions is just pure selfishness and wickedness on the part of the Government. There is a lot more to gain for them if they thought it through than arm.