[Blockchain Today Reporter Seo-yeon Jang] The Nigerian central bank made it clear that cryptocurrencies in Nigeria are not valuable as legal currencies.
The Central Bank of Nigeria (CBN) announced on the 5th (local time) that it would suspend accounts related to cryptocurrencies. The Nigerian central bank took the same position in 2017.
In a statement, the bank made it clear in this statement that it is not imposing new restrictions on cryptocurrency. All banks in Nigeria must suspend accounts related to cryptocurrencies. This measure is not a new measure, but an extension of the statement on January 12, 2017. Holding and trading cryptocurrencies is prohibited in Nigeria.”
According to the CBN’s statement, all banks in Nigeria are required to suspend all accounts associated with cryptocurrency trading platforms. With the announcement of CBN, local e-payment apps such as Binance and Bundle, cryptocurrency trading platforms, have stopped depositing. Users dissatisfied with the CBN’s move have also complained through Twitter and other social networking services.
CBN Director Osita Nwanisobi declared the suspension of cryptocurrency trading, insisting that “China will not only ban cryptocurrency completely, but also cryptocurrency exchanges will be closed.”
It is true that China places several restrictions on cryptocurrency transactions and users. However, it is not entirely banning cryptocurrency.
CBN noted that “an organization that is not regulated and without permission is issuing cryptocurrencies,” and pointed out that cryptocurrency is a speculative asset and is highly volatile. It doesn’t, the meaning is ambiguous and secret.”
However, it was also clear that CBN was not willing to limit the development of industries such as fintech. CBN said it was an inevitable step to protect citizens, including Nigerian youth, from cryptocurrency trading risks.
“Cryptocurrencies are usually speculative, anonymous, and untraceable,” CBN said. As a result, it is used for money laundering, terrorism and other criminal activities.”
It also pointed out that the high volatility of cryptocurrencies can pose a big threat to small investors. In the statement, “Considering the reality and analysis, CBN feels uncomfortable with cryptocurrency. CBN will do its best to the extent permitted by law to ensure that Nigerian citizens are not harmed by cryptocurrencies. We will also try to protect Nigeria’s financial institutions.”
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