Panic as Central Bank of Nigeria ordered all banks to close all cryptocurrency accounts

1 year ago 895

The Apex bank in Nigeria has directed all banks in Nigeria to close all cryptocurrency accounts with immediate effect and also instruct all

The Apex bank has directed banks against doing transaction with any cryptocurrency related accounts henceforth.

This directives which was sent to all banks in Nigeria also notify and warm financial and none financial institutions against doing transaction with the digital currency, a breach as stated will attract severe punishment and sanction from the Apex bank.

This latest directives given to banks means everyone in Nigeria will not have the opportunity to use cards issued by banks to process any form of cryto related transactions and also order immediate closure of all existing accounts.

Nigeria so far welcome the era of cryptocurrency with both hands expecially the youth which consist major percentage of the population.

This makes Bitcoin related trade move pass $400m and also make Nigeria one of the leading Bitcoin trading country all over the world.

Experts said the latest directives might be in connection with the fall in diaspora remittance in 2020 which was caused because of covid 19 pandemic while cryptocurrency increased sharply during Same year

Late last year, the Apex bank ordered switches and processor to halt all domestic currency transfer in respect of foreign remittance through International money  transfer operators (IMTOS)

 Central Bank of Nigeria had earlier issued a statement  stating that cryptocurrency are not legal tenders for transaction in Nigeria, it noted that cryto and exchanges such as  NairaEx are not regulated or licensed by the central bank.

Though, securities and exchange commission (SEC) and Nigeria stock exchange (NSE) has been empowered by Nigeria government to educate and let the public understand the risk regarding digital currencies and they came up with the reports that crypto assets are securities; unless proven otherwise. The burden of proving that the crypto assets proposed to be offered are not securities and therefore not under the jurisdiction of the SEC is placed on the issuer or sponsor of the said assets.”

Securities and exchange commission went further to say that, “issuers or sponsors of digital assets shall be guided by the commission’s regulation. The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices.”


There have been outcry by cryptocurrency investors about the regulations regarding digital currencies in Nigeria and Africa over the years, but this latest directives by Nigeria Apex bank come with panic and uncertainty about the future of Cryptocurrency in Nigeria which might open door for new cryptocurrency ecosystem if this ban is prolong more than what investors can absorb.

 Also, as of Friday Binance announced its suspended Nigerian naira payment partners deposit services until further notice, starting from 7p.m. local time, noting that it's monitoring the situation closely. Hopefully the Apex bank listen to public pain and propose or improve on economic  friendly policy.

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