Previous warnings had been publicized, yet only recently has there been any form of action against cryptocurrencies in Nigeria.
Major Updates
- The Central Bank of Nigeria shuts down Nigerian bank accounts associated with crypto operations.
- Prohibitions against crypto trade were announced in 2017, although no proper operations or bills were carried out until recently.
- On Sunday, February 7th, CBN issued a statement whose content adequately explained the regulations and policies of the latest crypto ban in Nigeria.
“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,” the statement said.
It was only on Friday that the bill was passed that all Nigerian bank accounts associated with cryptocurrency trading platforms (exchanges and wallets alike) were to be shut down.
This led to halted deposits on various crypto platforms, including Binance and Bundle.
“cryptocurrencies are completely banned, and all exchanges closed as well.”
Above is a claim made by the director of corporate communications, Osita Nwanisobi. He refers to China, implying that the Chinese government had ended all forms of crypto trade and holding in their nation. This is outrightly false as no official ban was passed on crypto in China.
The issued statement further downplayed the aim of cryptocurrencies. This was targeted at its anonymity, stating that cryptocurrencies were a tool for cyber-criminal activities.
“Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they are increasingly being used for money laundering, terrorism financing, and other criminal activities,” the statement said.
More claims even went along to imply that cryptocurrencies were issued by "unlicensed" and "unregulated" bodies, thereby making them a threat to real-time retail traders, investors, and the Nigerian economic sector.
So far, the citizens of Nigeria who were into the crypto trade are made to withdraw from the crypto. More news will be brought forward in the future.
