- The Central Bank of Nigeria recently announced a ban on Crypto trading
- The financial institutions need to ensure that all the involved accounts are closed immediately
- The majority is criticizing the policy as the government’s calculated attempt to impoverish young Nigerians
The Central Bank of Nigeria recently released a circular with a notification that Deposit Money Banks, Non-Financial Institutions, and various other financial institutions will not be continuing business in cryptocurrencies and other digital assets.
The apex bank’s circular instructed all the respective institutions to recognize the involved participants as well as the entities negotiating in or active cryptocurrency exchanges within their frameworks. They should also ensure that such accounts are closed in immediate effect.
Harsh response to CBN’s circular
The news of the CBN’s decision to restrict banks from offering crypto-related services through the banking system received a series of harsh reactions. The response on the social media platforms is the one of rejection.
The majority is condemning the set of rules as the government’s calculated attempt to impoverish young Nigerians. The popular belief is that the government wishes to target the one involved in earning money through crypto trading.
The lack of policy coordination between financial regulators was the highlight in Nigeria. It emerged because the SEC suggested a new set of rules just a few months ago. These rules proposed a framework of how the entity will administer crypto-token or Crypto-coin investments when the investment feature turns out to be eligible as securities transactions.
Binance’s plea on Twitter
Binance, a popular crypto exchange, took to Twitter with a plea for their Nigerian customers.
It urged them to immediately withdraw their NGN to discard any kind of channel issues. It also noted that the freshly introduced CBN law is a setback for crypto adoption in Nigeria.
Still, on Binance, various other crypto speculators requested the people to be calm. They urged the Nigerians to shift their Naira balance to USDT (Tether) stablecoin on the network to be careful against CBN restricted deposits.
However, the recent crypto restrictions led Nigerians to finally propose different ways to avoid the CBN regulation. Chin, a tech and finance writer, suggested that people witness crypto exchanges use Ghanian banks as their network points. In contrast, the Ghanian economy will gain from the extensive money inflow.
Notably, Nigeria captivates significant interest in Bitcoin. According to blockchain.com’s recently published report, Nigeria is developing as one of the fastest-growing cryptocurrency markets in the world.
According to popular analysts, Nigerians used crypto assets to decentralize against the regulatory government authorities. And as a consequence, peer-2-peer crypto transactions are likely to surge over the upcoming weeks.
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