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- CBN has ordered to cease all crypto transacting accounts
- According to them, investing in cryptocurrencies is risky
- It is an unlikely measure as Nigeria has gained a growing interest in dealings in cryptocurrencies
The Central Bank of Nigeria ordered all financial institutions to cease the accounts that undertake crypto transactions. If any financial banks fail to adhere to the said rules, serious measures will be taken against them.
The Central bank published a circular in Nigeria on, February 5, 2021. The circular has been published on the bank’s website. Nigeria’s SEC is closely regulating digital currency transactions. To secure the investors and protect them from frauds by maintaining transparency in the transactions.
Challenging step of Central Bank of Nigeria
Nigeria’s central bank took this vital step in Africa after the protests of October 2020. These protests were against the Special Anti-Robbery Squad of the Police(SARS) .
They used crypto units of Bitcoin to generate and provide funds even after the Government had banned the use of the localized platform of the transaction to collect vast amounts of donations.
Measure taken against crypto accounts
CBN issued a press release on Wednesday, in which they warned all the financial institutions and the residents that it is hazardous to deal in cryptocurrency and that it makes the market more volatile and increases the risk of bankruptcy for the investors. These measures have been taken when the country is investing and gaining profit in cryptocurrencies. Recently in 2017, the trading volume of Bitcoins local transactions reached 500%. Nigeria is also one of the topmost countries dealing in Bitcoin as per Google trends.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
