[2021-02-05] In NIGERIA: CBN HAS BANNED CRYPTO TRADING

[Murpheus]

The Central Bank of Nigeria has directed banks in the country to close all cryptocurrency-related accounts.

The bank said this in a statement on Friday.

https://www.premiumtimesng.com/business/440826-updated-cbn-orders-nigerian-banks-to-close-cryptocurrency-accounts.html

The regulator prohibited all financial institutions from facilitating crypto currency payments in the country.

This directive is contained in a letter addressed to all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) on Friday.

This was confirmed to PREMIUM TIMES by Osita Nwanisobi, CBN spokesman.

According to the letter, signed by Bello Hassan, director of banking supervision, and Musa Jimoh, director, payments system of management department, the apex bank directed all

DMBs, NBFIs and OFIs to identify persons and entities transacting in, or, operating crypto currency exchanges within their systems to close such accounts immediately.

In the letter, the CBN referenced a circular it issued in January 12,2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) as well as members of the public on the risk associated with transactions of crypto 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 is prohibited,” the statement reads.


What could this mean to me?? Am a Nigerian Citizen, and I don't know to what extent this would affect me.....
But like its always discussed here, Trying to stop the rise cryptocurrency would mean shutting down the internet completely, if you are a Nigerian don't fret, we still got each other.... Meanwhile I will keep checking the authenticity of this news headline

[Sithara007]

It sounds like a banking ban. I am sure that the cryptocurrency users would be able to find loopholes to get around this law. A few years back, they tried the same in China, but there was absolutely no impact on the trading. People would use peer-to-peer platforms instead of mainstream exchanges and the banks will be unable to flag those accounts that are being used in these platforms.

[Kittygalore]

It sounds like a banking ban. I am sure that the cryptocurrency users would be able to find loopholes to get around this law. A few years back, they tried the same in China, but there was absolutely no impact on the trading. People would use peer-to-peer platforms instead of mainstream exchanges and the banks will be unable to flag those accounts that are being used in these platforms.

They will find loopholes but knowing how banks work, they can do some lobbying to the government and the enforcement authorities to make the ban work its wonder. Hopefully, what happened in China would land in the same situation with Nigeria and have the ban become useless by a month's or by best is week's time. And if this is a political one though, that would be a problem because we all know that when normal people touch politics, the ones that are handling it will be really angry and they will do anything just to keep being in power. I feel bad for Nigeria, they are a big contributor to the cryptocurrency traffic besides USA and to see their freedom get taken away is a sad thing for me.

[cr1776]

If you are trading, that is one thing.  If you go to your Tesla dealer and say, "here is 1 bitcoin for a Telsa" and your dealer then pays their employees in bitcoin who then buy groceries in bitcoin, then who needs trading? 

To me this just encourages people to stay in bitcoin.

[DapanasFruit]

I am sure this will never kill people's interest with cryptocurrency and can instead be a big reason for more adoption but we know that if there  can be a ban for banks dealing with cryptocurrency then facilitating can be a little bit difficult though of course not impossible as there can still be peer-to-peer platforms that can be utilized by those who are really interested. I am actually sad to see the Nigerian government doing this thing, and maybe I am assuming that the many scams in the past is one of the many big reasons for this unfortunate decision. I am wishing that the people themselves should seek a clearer guidance from the government and ask that they not make things here that so difficult for those who are doing things above board.