- Central Bank of Nigeria has prohibited Nigerian banks from allowing cryptocurrency dealing and payments in the country
- If any resident or entity in Nigeria uses crypto will have to face severe regulatory sanction
- The central bank is showing debunked claims to justify its latest move to ban cryptocurrency
- Following the many believes that it is time for P2P trading to rise
The Central Bank of Nigeria has recently published and sent new warnings to financial banks and financial institutions to restrict cryptocurrency trade. Following the crypto ban, the Nigerian residents outcried over the central bank’s decision. In the latest development, the bank issued a five-page statement clarifying the nation’s position on cryptocurrency.
Nigeria’s central bank took such a stance after the protest of October 2020, which was against the Special Anti-Robbery Squad of the Police (SARS). However, the individuals are concerned regarding the bank’s insistence that this directive is intended to protect the nation’s financial system.
Central Bank of Nigeria is justifying with debunked claims
According to the Central Bank of Nigeria, latest regulations have not been put for new cryptocurrency restrictions. The bank has just reminded the cryptocurrency users that such currencies are not legal tender since four years ago.
Following the aforementioned fact, the use of crypto was against the critical mandate of the central bank. In recent days, the country has witnessed substantial growth in the nation’s crypto industry, and Nigeria is ranked one of the world’s leading crypto markets. Observing the aforementioned facts, the country should embrace it, instead a restriction is put on the cryptocurrency. The statement relies on unsustained claims to justify the banking system’s decision to ban crypto.
Cryptocurrency users would face grave regulatory penalty
Following the orders given by the Central Bank of Nigeria, all the banks in the country will now need to identify individuals and entities transacting with cryptocurrencies. Also, they need to find the crypto exchange operating accounts and close all such accounts immediately. According to the central bank, any individual or entity breaching the order would face severe regulatory sanctions.
Crypto ban decisions sparked a rise of P2P trading
After the Central Bank of Nigeria’s decision, some players in the Nigerian crypto industry are adamant that the regulation will now boost P2P trading options. According to some Nigerian crypto users, the ban has not brought cryptocurrency prohibition. Instead, they prohibited cryptocurrency trading with the banks. However, after the crypto ban, the users are planning to start P2P trades.
Following the disappointing policy from Nigeria, many experts in the cryptosphere are considering that the central bank’s directive has more to do with the condition of the nation’s economy.
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