Nigerian Main Bank Says Its Ban on Crypto Accounts Is Nothing New

The Main Bank of Nigeria claimed their warning to banks on Friday wasn’t a new position but a reiteration of their 2017 stance on cryptocurrencies.

The Main Bank of Nigeria (CBN) released a five-page record Wednesday clarifying their cryptocurrencies position after having a regulatory warning to local banking institutions on Friday sent shockwaves through social media.

In Sunday’s statement, the CBN claimed Friday’s page was only an indication that cryptocurrencies weren’t legal tender in Nigeria and was reiterating a posture the lender has used since 2017, maybe not imposing new restrictions on the industry.

“It is vital to date June 2011 that the CBN round of March 5, 2021, didn’t position any new constraints on cryptocurrencies, given that banks in the united kingdom had earlier been forbidden, through CBN’s round dated January 12, 2017, never to utilize, hold, business and transact in cryptocurrencies,” the statement said.

The CBN sent a page to local economic institutions on Friday, getting them to turn entirely off all bank records associated with cryptocurrency trading platforms. In a reaction to the page, crypto trading platform Binance and local electric payment programs like Pack stopped deposits. Angered Nigerian crypto people needed to Facebook and other cultural marketing systems to express their displeasure.

The push record, closed by Osita Nwanisobi, Ag. manager of Corporate Communications moves on list other countries that have barred its banks from working in cryptocurrencies and produce the declare that in China, “cryptocurrencies are fully barred, and all exchanges shut as well.”

While China has imposed several restrictions on crypto exchanges and users, it has not entirely banned cryptocurrencies.

Additionally, it states that cryptocurrencies are issued by “unregulated and unlicensed” entities and that crypto assets are volatile speculative assets that could be a danger to Nigerian users.

“Ab muscles name and nature of ‘cryptocurrencies implies that its patrons and users value anonymity, obscurity, and concealment,” the statement said.

In the letter, the CBN assured that stance won’t inhibit the fintech sector’s progress in the country or its payments ecosystems. The directive became necessary, it said, to guard Nigerians, including its youths, from the risks inherent in crypto assets transactions.

“Because of the proven fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they’re increasingly useful for cash laundering, terrorism financing, and other offender activities,” the record said.

The letter also stated that the high volatility inherent in crypto resources posed a substantial risk to “small retail and unsophisticated investors” who stand to reduce a lot.

“In light of those realities and analyses, the CBN has no comfort in cryptocurrencies just at that time. It’ll carry on to accomplish all within their regulatory forces to teach Nigerians to desist from their use and protect our economic process from activities of fraudsters and speculators,” the statement said.

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