Nigeria government did not ban bitcoin

[Charles-Tim]

On February 05, 2021, the central bank of Nigeria prohibit any regulated institution dealing with bitcoin and other cryptocurrencies, such institutions accounts were ordered to be closed.



But, Nigerians should still know that bitcoin and other crypto assets are not banned in the country, only the banking aspect of it are restricted.

“As regards our recent policy pronouncement, it is important to clarify that the CBN circular of February 5, 2021 did not place any new restrictions on cryptocurrencies, given that all banks in the country had earlier been forbidden, through CBN’s circular dated January 12, 2017, not to use, hold, trade and/or transact in cryptocurrencies.

So, carrying out p2p is not forbidden or any other thing related to cryptocurrencies like mining remain legal as they are beyond the power of the CBN. What do you people think about this?

[1715199478]

1715199478

[1715199478]

1715199478

[1715199478]

1715199478

[1715199478]

1715199478

[Red Pie]

Hi Charles.

Nigeria makes the wrong decision on these matters. banking transactions are prohibited. Nobody knows that they will not ban cryptocurrencies completely in the future. This is the part that people worry about. They say if we have a problem like this in the following days? As long as this decision is made, people will constantly have questions in their minds.

[TimeTeller]

Hi Charles.

Nigeria makes the wrong decision on these matters. banking transactions are prohibited. Nobody knows that they will not ban cryptocurrencies completely in the future. This is the part that people worry about. They say if we have a problem like this in the following days? As long as this decision is made, people will constantly have questions in their minds.

And that means, no local crypto-exchange can exist in their country as it will not be approved by their Central Bank.
That's too bad for their crypto users as they will rely on p2p platforms, which hopefully will not be a breeding ground for scammers.
Now, that Tesla is out with their billion investment in bitcoin, hopefully, their government will re-consider about their approach in crypto.
I believe, that there will still be changes on their perspectives towards crypto.

[lifeforcepools]

Why do some governments constantly change their minds about crypto? They ban them, then accept it again?

[avikz]

Lol! Is it anyway better than a blanket ban?? India took a similar step 2 years ago which was eventually taken to the Supreme Court and eventually we got it lifted! But I believe banking ban is as good as a blanket ban because traders will not have any option to cash them out and it's very difficult to use bitcoin as a payment method for your daily purchases!

These kind of ban actually create a lof of confusion and legal loopholes which eventually increase the risk.

[bosede1]

The Circular did not depict that the Nigerian government banning Bitcoin is the trading that is banned for now. I read about the Indian government also banning private cryptocurrency just wished that all this will pass and everything will be back in its place

[sheenshane]

It seems this was still good news for Nigerians that they still able to hold and used cryptocurrencies.  I remember this when China banned cryptocurrencies and suddenly they changed their mind and accept it again and lifted the restriction.  Just because probably they'd realized that Bitcoin is no really harmed or threat to the government because they can treat this as an asset.  But yes, the problem is when it comes to cash them out their assets, it will surely need local centralized exchanges for it.  

For those who didn't know any alternative ways of cashing their money out from exchange without knowing or linking in any banking systems that connected to their government, that's might a problem for now.

I have doubt that time will come they will be lifted this restriction.

[bitbollo]

For what I have seen most of transactions taken place in peer to peer exchange like paxful.  technically this law has not changed anything for the final user, it's pretty true.
however I think this don't seems a good move for their internal financial system.
accepting bitcoin and crypto currencies could just add new services and new way for revenue...help a whole economy!

[AakZaki]

Why do some governments constantly change their minds about crypto? They ban them, then accept it again?

because several governments have their own standards regarding the regulations that will be given to bitcoin. We also already know that bitcoin has high voting and of course it is risky if applied in the banking aspect. There are many pros and cons, but even so Bitcoin is still allowed to be used as commodity trading or in other countries it is allowed as transactions such as FIAT money.

[ecnalubma]

While most governments are crafting flexible regulations for Bitcoin and other crypto’s there are still governments that are very conservative and still uncomfortable handling this technology. Maybe one day time will come that no governments will ban it once they realised the importance of this tech inventions.

[Stedsm]

They did it the same way India restricted its Banks to stop dealing with any person / institutions dealing in crypto, but later Supreme Court lifted the ban and let the Banks start the job again. But this time, it seems like Nigerians are in a big trouble because this will only demotivate people to go digital and use banking services because they're being restricted to use their own money wherever they want to. It's like they are being forced not to adopt crypto and stay away from it, not so good for a country which had lots of customers trading in cryptocurrencies.

[The Cryptovator]

Really it doesn't make sense. Peoples could use bitcoin but they couldn't sell or buy legally. Because if the bank detects any transaction connected with cryptocurrency then they would suspend the bank account. How a bank expecting peoples will only hold cryptocurrency and they will not sell? Rather than use banks, crypto holders will find some illegal way since banks ban crypto. Who knows if after a few days government also announced a ban on cryptocurrencies. Anyway, the decision is confusing and against the trend.

[Hydrogen]

Nigeria's banking industry technology could be old, outdated and obsolete. It could run on legacy hardware and ancient systems literally from decades ago. Nigeria's banking networks could be inferior to bitcoin and cryptocurrencies in every way. While some might view these bans as power moves. They could be motivated by desperation, instead.

Banks run a risk of alienating not only their base utilizing BTC. But their normal non crypto using clients as well.

They might have forgotten their success revolves around empowering customers and providing them solutions to problems.

Creating more problems for society, by implementing bans, goes against the grain. Closing doors is a boner killer to business and daily living that the public may not tolerate for long.

[hahay]

I'm not sure about the rules because when there are no banks that accept crypto it means no local exchanges are available, it's like killing slowly. Instead of making confusing rules it seems it would be better to make rules about a full ban, because when a local bank is prohibited from cooperating it basically prohibits any use and / or transaction with bitcoin. But as bitcoin continues to grow, I only hope that the rules will be changed soon, at least bitcoin is safe and legal to trade in that country.

[Travel Standard]

Yes they restricted all crypto holding and trading company from using a direct bank operating system in their platform. It means one can no longer buy crypto with a bank acct from Nigeria except p2p traders .
I heard there are ways you can deposit and withdraw money with REVOLUT. YOU have Revolut in Nigeria???

[Oshosondy]

Anyway, the decision is confusing and against the trend.

The central bank of Nigerian do not know much about cryptocurrencies, they also do not have experienced people that can explain about cryptocurrencies to them. They refered to cryptocurrencies as anonymous, supoorting terrorism and money laundering, while it is very clear that the so called Boko Haram they are dealing with are using fiat to sponsor themselves, the fiat which is hold by the Nigerian banks. When they could not know what cryptocurrencies actually are, they made the bad and wrong decision that will get the country more behind.

[Murpheus]

Anyway, the decision is confusing and against the trend.

The central bank of Nigerian do not know much about cryptocurrencies, they also do not have experienced people that can explain about cryptocurrencies to them. They refered to cryptocurrencies as anonymous, supoorting terrorism and money laundering, while it is very clear that the so called Boko Haram they are dealing with are using fiat to sponsor themselves, the fiat which is hold by the Nigerian banks. When they could not know what cryptocurrencies actually are, they made the bad and wrong decision that will get the country more behind.

Too many unlearned persons are in the place of power,  some of them or rather most of them only found their selves in those position by virtue of connections....
Is that their excuse, for funding terrorisms lmao....
dont be surprised its our very own leaders who are funding it, I don't want to be a conspiracy theorist lemme stop there....

[CarnagexD]

It's a very vague rule if I may say. Like, you can conduct your business with bitcoin and other prominent cryprocurrency in the market on Nigerian Soil, but not conduct business with bitcoin and other cryptocurrencies in Nigeria. If they wouldn't make it clear and easier to undwrstand for people, then they'll have trouble trying to impose this rule on the people.

I'm not sure about the rules because when there are no banks that accept crypto it means no local exchanges are available, it's like killing slowly. Instead of making confusing rules it seems it would be better to make rules about a full ban, because when a local bank is prohibited from cooperating it basically prohibits any use and / or transaction with bitcoin. But as bitcoin continues to grow, I only hope that the rules will be changed soon, at least bitcoin is safe and legal to trade in that country.

Too bad as I see bitcoin helping these countries the most. Now they're trying to cut down a valuable rope. That being said, that's what I have said, make it more concise and simple for people to understand it better.

[Rexler]

And that means, no local crypto-exchange can exist in their country as it will not be approved by their Central Bank.
That's too bad for their crypto users as they will rely on p2p platforms, which hopefully will not be a breeding ground for scammers.
Now, that Tesla is out with their billion investment in bitcoin, hopefully, their government will re-consider about their approach in crypto.
I believe, that there will still be changes on their perspectives towards crypto.

you're right at the moment there's no local exchange working in Nigeria, they had a few local exchange like luno and roqqu and immediately the federal government announced that banks should no longer be involved in any crypto transactions, the local exchange  were all shut down, it's really bad for Nigerians cause now they won't be able to change their crypto to naira smoothly unlike before, I just hope their government will revise this decision soon.

[ReiMomo]

Lol, it seems you are like a king without a kingdom.

How come they allow using cryptocurrencies to their people but they can't be able to withdraw their funds that come from crypto because their government did not support cryptocurrencies on any custodial wallet or centralized local exchange. I guess I have to think that this is just a trap by users if you are coming from Nigeria.

In a legal way of using bitcoin Nigerian will might not able have an option but I think there are too many ways to sell your bitcoin into fiat.