Central Bank of Nigeria bans banks from servicing crypto exchanges

[Joshua Farrell]

The Central Bank of Nigeria has placed a ban on all regulated financial institutions from providing services to crypto exchanges in the country.

The prohibition was contained in a circular issued by the CBN on Friday. According to the central bank's notice, the ruling is an extension of earlier warnings from the bank about the risks associated with digital currencies.

As part of the ban, the CBN has directed all commercial banks to close accounts belonging to crypto exchanges and other businesses transacting in cryptocurrencies in the country.

The CBN also warned of stiff penalties to any bank or financial institution that fails to comply with the directive.

Central Bank of Nigeria bans banks from servicing crypto exchanges

Nigeria's central bank has banned financial institutions from rendering services to crypto exchanges.

cointelegraph.com

The Central Bank of Nigeria has notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto and other digital assets.

In a circular dated 5th February 2021 and distributed to regulated financial firms, the apex bank of Africa’s largest economy warned and reminded local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.

In addition, the apex bank instructed the financial institutions to immediately close the accounts of such persons or entities transacting in or operating cryptocurrency exchanges.

The Apex bank further warned the Nigerian Financial Stakeholders that any breach of this directive will attract serious regulatory sanctions.

CBN instructs banks to close accounts related to Crypto

The Central Bank of Nigeria has notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto

nairametrics.com

Has the above news affected any of our Nigerian Members? If so, I would imagine there are ways around this so to not have issues.

 

[Ltherman]

As nigerians we're very innovative and we will definitely find ways round this new policy. It is sill too early to say how far reaching this policy is, the coming days will reveal more as to what the true intense of this policy is. If it turns out to affect how Nigerians transact with cryotocurrency then we will always innovate into other viable alternatives.

 

[Nurudeen]

This is a bad step taken by the Nigerian Government as Nigeria is the second largest user of crypto currency in the world after United States of America. However, Different crypto currency exchange platform have issued out memo to Investors that they are still reviewing the situation so we are still awaiting their further action as regards the new policy from the government.

 

[Diddi01]

I just saw that on the news earlier this morning and I don't even know how to feel about it. What about us online hustlers that earn money using legitimate ways. I just started using cryptos late last year and I really love it. Does that mean I can't send and receive cryptos again?

 

[Lyrrex]

Central Bank of Nigeria bans banks from servicing crypto exchanges

Nigeria's central bank has banned financial institutions from rendering services to crypto exchanges.

cointelegraph.com

CBN instructs banks to close accounts related to Crypto

The Central Bank of Nigeria has notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto

nairametrics.com

Has the above news affected any of our Nigerian Members? If so, I would imagine there are ways around this so to not have issues.

This news will only hinder the operation of exchanges whose operations majorly depends on cash deposits and withdrawal via Nigerian banks. So it doesn't affects we Nigerians negatively. P2P transactions still continues as usual, no hitch! no glitch!

We move!!

 

[Klismannm12]

Send information was on that was misunderstood or maybe wasn't party very well they just stopped Bank from taking active participation in 53 then I'm not individuals individuals can do with you can you can go ahead and participate 40 pounds

 

[Lyrrex]

I just saw that on the news earlier this morning and I don't even know how to feel about it. What about us online hustlers that earn money using legitimate ways. I just started using cryptos late last year and I really love it. Does that mean I can't send and receive cryptos again?

That restrictions doesn't affects Crypto bro. Everything goes on as normal, P2P. Just that we can no longer use luno and co.

 

[Mastercoded]

We saw this coming, the government need to have control of inflow and outflow of cash, i believe this policy is to curtail terrorism and the security challenge of the country

 

[Diddi01]

That restrictions doesn't affects Crypto bro. Everything goes on as normal, P2P. Just that we can no longer use luno and co.

But I have about $12 on Luno. Does that mean that I can't withdraw the money at all?

 

[GIFTMICHAEL]

Well iam yet to confirm the truism behind this circular.
If this finally become true then it is a wrong step in the right direction.
Central Bank of Nigeria should be wise and understand that it is very wrong for a big country like Nigeria to ban crypto activity.

 

[Chumzy]

I have not totally understood the implications of the ban on people like me. I know for sure that the sound of it is not good in anyway for everyone. The bans Nigerians are getting from online transactions in general is not so pleasant to the ear.

 

[Judee201]

First it was their shitty policy on forex which is making it hell on earth for online business owners and freelancers to recieve money from abroad to Nigeria, now it's banning transactions with crypto exchanges.

This country is gradually crawling back.
Even when the country is not helping her citizens, they also want to stop us from helping ourselves!

God help us.

 

[WhiteHouse]

It's a very sad development, the news just broke out this morning by the director of banking, I don't know why they want to frustrate nigerians especially the youths, so many People make their livings through crytpocurrencies trading.

 

[Ezzyoj]

This is really bad, this government is really bad for us. Without me knowing I sold my bitcoin today through luno and am yet to get paid. Its like I have lose my money. Just hoping they find a way around it for me to get my money

 

[CeeJase]

Yes, I came across that today. One thing is to ban/regulate it, the other is to discover how clever Nigerians are. The comings days will tell the outcome of this indecisive action they took.
They have tried to control forex and now they are at crypto, if you can't beat them you stop them.

 

[Lyrrex]

But I have about $12 on Luno. Does that mean that I can't withdraw the money at all?

Of course you can withdraw to bank or your private wallet

 

[Damscooguns73]

Concerning central bank of Nigeria placing ban on servicing of cryptocurrencies. Well, my country is always acting anyhow because I don't know what problem the government has with it, mayb they feel like they want to have control over it or they want us to start paying task, I believe the matter should be resolved and if not, Nigerians will adapt and find solution

 

[idhans]

As nigerians we're very innovative and we will definitely find ways round this new policy. It is sill too early to say how far reaching this policy is, the coming days will reveal more as to what the true intense of this policy is. If it turns out to affect how Nigerians transact with cryotocurrency then we will always innovate into other viable alternatives.

Central Bank of Nigeria bans banks from servicing crypto exchanges

Nigeria's central bank has banned financial institutions from rendering services to crypto exchanges.

cointelegraph.com

CBN instructs banks to close accounts related to Crypto

The Central Bank of Nigeria has notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto

nairametrics.com

Has the above news affected any of our Nigerian Members? If so, I would imagine there are ways around this so to not have issues.

cryptocurrency have come to stay and there is no government that can stop it. If American government cannot stop cryptocurrency I don't think Nigerian government can. There are other avenues that we can still fund our crypto wallets and nothing can stop it.

 

[JamoPosh]

Its the biggest mistake they will eventually regret their actions toward making decisions on the country economy. The rate of unemployment in the country is really disheartening and not encouraging educational system in the country. The same people been unemployed are trying to make living through the cryptocurrency or digital marketing that has to do with crypto. As the world move digitally we need to adapt to the system, so they have no genuine reasons for such act and I can see they won't us serve them and play by their false rule which benefit them only but not the striving citizens trying to be a self made with the online opportunity. It wrong and false decision made from them.

 

[Joshua Farrell]

I do know that India reversed their ban on crypto, after a big push back from their people.

I just hope it does not stay like this in the long term.