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The Central Bank of Nigeria orders Nigerian banks to stop serving Bitcoin customers

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In a surprising new development, the Central Bank of Nigeria has ordered Nigerian banks to stop serving Bitcoin customers.

The circular published by the Central Bank of Nigeria revealed the intention of the main bank to crack down on buying and selling bitcoin.

The Central Bank issued a memorandum signed by Mr. “Kevin Amogo,” Director of Financial Regulation and Banking Policies, which was previously presented in 2017 for evaluation and consideration, as the proposal bears the need to beware of using unregulated cryptocurrencies and highlights the place of digital currencies in facilitating money laundering. And terrorist financing.

It appears that the new circular issued by the Banking Supervision Department is a strict follow-up to previous warnings.

According to local press sources in Nigeria, the central bank is now asking all depository financial institutions (DMB), non-bank financial institutions (NBFI) and other financial institutions (OFI) to close the accounts of people involved in digital currency trading immediately to avoid facing sanctions.

In the statement of the Central Bank of Nigeria:

In addition to previous regulatory directives on this topic, the bank would like to remind the regulated institutions that it is prohibited to deal in cryptocurrencies or facilitate payments for the exchange of cryptocurrencies.

The news comes right after a proposed bill to ban private cryptocurrencies in India.

The ban will hinder the crypto industry in Nigeria as it starts to thrive:

It seems that the rapidly developing crypto industry in Nigeria will be pulling the plug.

It will be a shock to the crypto community in Nigeria, which is the most populous country in Africa.

The statement issued by the Central Bank of Nigeria is in stark contrast to what the Nigerian Securities and Exchange Commission has promised to regulate cryptocurrencies in a way that will not impede technology or stifle innovation, but create standards that encourage ethical practices that ultimately lead to a fair and efficient market.

Last December, data and figures emerged stating that Nigeria is the second largest P2P trading market for Bitcoin after the United States of America.

The results of a Google search for bitcoin confirmed the mentioned figures regarding the booming crypto industry in Nigeria.

The boom in the crypto market in Nigeria has made it the spotlight of many crypto and blockchain companies around the world.

In August 2020 Blockchain.Com reported a 60% increase in Nigerians’ use of their web wallet since April 2020.

Paxful also registered a 137% increase in new registrations from Nigeria between January and September 2020.

As one of the leading countries in the pursuit of widespread adoption of cryptocurrency, the impact of banning Bitcoin clients from using banking services would inevitably affect the rapid growth of cryptocurrency in the African country.

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