CBN Cryptocurrency Ban: What Does This Really Imply?

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The Central Bank Of Nigeria friday, directed Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Non-Bank Financial Institutions (NBFIs) as well as local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.

This did not really come as a shocker as the CBN had been issuing this warning on cryptocurrency exchanges for a long time.

However, the directive does not stop anyone from dealing in crypto currencies, but implies that you can no longer make any transactions with cryptocurrency through the regular banking system.

Shedding more light on the directive, the President Bank Customer Association of Nigeria (BCAN) Dr. Uju Ogubunka in an interview with Vanguard explained that the CBN provides a statutory procedure within which all banks and and financial institutions must operate.

In his words, “Cryptocurrency is not the approved legal tender of Nigeria. The CBN approved the naira as the legal tender of the country”

“The CBN is not stopping Nigerians not to deal in cryptocurrency trading but they cannot do it through the banking system.”

In plain terms, all banks and financial instututions licensed by the CBN who trade in crytocurrency must desist forthwith. Also, all persons or entities are barred from receiving cryptocurrency as payment in all banks or other financial institutions licensed by the CBN.

This implies that if by chance a payment is made in cryptocurrency, then such funds cannot be withdrawn in cash in Nigeria.

Also, cryptocurrency exchangers like Luno and other entities who trade in crypto are required to close their bank accounts and source for other means to make transactions.

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