CBN bans cryptocurrency trading in Nigeria

The Central bank of Nigeria has banned the trading of Bitcoins and other cryptocurrency in Nigeria. This is according to a circular seen by MakeMoney.ng.

The circular which is signed by Bello Hassan, the director of banking super vision and Musa Jimoh, the director of payment system management department was sent to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

Banks have been asked to close bank accounts of anyone or group buying or selling cryptocurrency. Failure to do that will attract sanction from the Appex bank.

Part of the statement reads:

“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited, ” the circular signed by Bello Hassan, director for banking supervision, and Musa Jimoh, director of the payment system management department, read.

“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”

Meanwhile, Nigerians have taken to social media to vent their frustration of the new CBN directives. See some reaction below:

You know the worst part of this, the Police will start arresting people with any of the Crypto trading Apps on their phones. They now have a justification from the CBN. Nigeria is not a normal country.

— Wale Adetona (@iSlimfit) February 5, 2021

Major advantage of Crypto is you cannot stop it. Little research will have told them:
1. Merchants will ask to be paid directly in crypto
2. P2P exchanges will flourish
3. People will move volumes of crypto & #BTC in hard drives & cold chain storage.

You cannot stop the future!

— Tola (@adetolaov) February 5, 2021

CBN banning Crypto has to be the worst decision by any government on eth.

— Sheddy King 🌍 (@thesheddyking) February 5, 2021

In Nigeria🇳🇬…
Using washing machine Is called laziness
Using crypto is called fraud
Using Social media is a sin
Demanding for good governance is a crime
Being Young and successful is a crime

How can a country be so comfortable with hardship and stress??????

— BIG DADDY (@bigdaddyvinz) February 5, 2021

Dear CBN,

You can stop platforms from using the banking system for crypto transactions.

But do you know what’s called Peer to Peer?

Do you know what’s called DeFi, decentralized finance.

You can remain backward but you would not drag us back.

— Tosin Olugbenga (@TosinOlugbenga) February 5, 2021

If the ban on crypto by CBN is true ehn, it points yet again to the ill informed, backward, poverty promoting dinosaurs 🦖 leading us. Use your time ⌚ to investigate and close accounts sponsoring terrorists in the country if you don’t know what to do!!! GAWD 🤦🏾‍♂️#endsars 🚶🏾‍♂️

— Dj Switch (@dj_switchaholic) February 5, 2021