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  • Business - Economy
  • Updated: March 22, 2021

CBN Denies Banning Cryptocurrency

CBN Denies Banning Cryptocurrency

Nigeria’s central bank is now rejecting claims that cryptocurrencies have been banned in the country, saying that there was no time when the apex bank stopped Nigerians from using cryptocurrencies.

Emefiele, who was represented by Adamu Lamtek, Deputy Governor, Corporate Services, said at the recent 30th seminar for Finance Correspondents and Business Editors organized by the bank that what the bank did was to protect the banking sector from the activities of Cryptocurrencies and not a ban on its activities.

READ ALSO: Cryptocurrencies: SEC To Suspend Admittance Of Persons Affected By CBN Circular

"The CBN did not place restrictions on the use of cryptocurrencies and we are not discouraging people from trading in it. What we have just done was to prohibit transactions on cryptocurrencies in the banking sector."

The clarification comes more than a month after Nigeria’s central bank told all banks to immediately cancel their services for customers who buy, sell, or trade cryptocurrencies. A circular was issued by the CBN, stating that the ruling has come as an extension of the prior warnings regarding the risks associated with digital assets. 

As a result of the ban, the CBN demanded all commercial banks close accounts that belonged to crypto exchanges or businesses involved with transacting in digital currencies in Nigeria. Shortly after the publication of the ruling, banks and other financial institutions have begun complying with the directive.

Seeing that Nigeria currently stands as the second-largest bitcoin market, reports that the apex bank had banned the trading of cryptocurrencies triggered a severe public backlash among Nigerians who have taken to the cryptos as a safe haven in a severely battered economy.

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