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Central Bank of Nigeria Says Nigerians Can Trade In Crypto

Nigerian’s dependence on bitcoin and other crypto-assets is not a secret. Since inflation has been rife in the country, its citizens have to resort to crypto trading to circumvent the worsening economy. However, news spread around that Nigeria’s financial authorities have compelled all financial institutions to ban crypto-related accounts to stop illegal financial transactions. But in a new development, today ng, a news outlet from the country confirmed that the previous news of the financial authorities asking financial institutions to ban crypto-related accounts was a misunderstanding. After several investigations into crypto trading and crypto-trading accounts, the CBN has clarified that it won’t mind that the country becomes known as a bitcoin country. The news clarifies that the CBN‘s efforts were meant to distinguish between the citizen’s use of cryptocurrencies and crypto-linked financial transactions. Hence, it is not putting a stop to cryptocurrency trading so long there are illicit activities.

CBN’s New Statement Regarding The Ban Situation

The CBN’s spokesman, Adamu Lamtek (who is also one of CBN’s deputy governors) supplied this information on behalf of the governor of the central bank, Godwin Emefiele. During the most recent seminar for finance correspondents and business editors. Lamtek was quoted as saying: “the central bank of Nigeria never restricted people or discouraged them from trading cryptocurrencies. The measures put in place were to prevent cryptocurrency transactions in financial institutions.”

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Lamtek’s new brief was in response to a purported letter from the CBN to all financial institutions in the country where it gave them a directive to restrict crypto trading or encourage the use of crypto exchanges. This letter led to nervousness and speculation across the country as the nation’s crypto industry was still in its infancy stage. This previous letter was signed by the central bank’s director of banking supervision and part of it stated that: “the bank wants all recognized financial institutions to understand that it is now against the law to facilitate payments for crypto exchanges or deal with cryptocurrencies.” Hence, it becomes necessary that all persons or firms holding or running crypto exchanges with any OFI (other financial institutions), NBFIs (non-bank financial institutions), and DMBs (deposit money banks) be identified and their accounts closed instantly.

Few hours after publishing this letter on the bank’s official online channels, the bank retracted the letter. But there was neither a new letter to replace the previous nor was the letter published again. Some analysts argue that the letter was a warning for financial institutions to stop trading or dealing with crypto-related assets, and it’s not to hinder the citizens from trading or dealing with cryptocurrencies.

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Will India Follow Nigeria’s Footsteps?

Nigeria’s situation is similar to what currently obtains in India. There are rumors that India’s central bank is also on the verge of making it illegal to trade or deal in crypto-related activities which continues to rise in popularity by leaps and bounds. But the country’s finance minister has come out to say the rumors aren’t true.


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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