The cryptos in Nigeria is set to go under a major drawback as CBN Orders Banks to Shutdown Accounts of Persons & Companies Transacting Cryptos. From the recently released order from the Central Bank of Nigeria (CBN), all banks, non-bank financial institutions (NBFI), and other financial institutions in the country have been directed to close accounts of companies or persons operating cryptos exchanges in Nigeria.
The Rise of Cryptos in Nigeria
The order given by CBN came at the time Cryptocurrency is undergoing widespread adoption in Nigeria. Since bitcoin skyrocketed in late last year, there has been increase in the number of people and companies investing and transacting cryptocurrency. Arcade Research ranked Nigeria as the 5th globally with about 11% of its internet subscribers owning or using cryptocurrencies Last year.
But regardless of the increase in appreciation of cryptocurrencies in Nigeria, the Nigerian government has refused to embrace it.
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Part of the issued order claimed that people dealing with crytocurrencies may lose their money without any legal security as it was not protected by the Nigerian law. However, the continuous growth and trust in cryptocurrencies have only increased adoption in the country and forced people to turn deaf ears to the CBN warnings.
Coinmarketcap ranked Nigeria among the top 9 in crypto growth in the world.
Last year, when the Nigerian Securities and Exchange Commission established a committee to create a framework for the regulation of digital assets and local crypto exchanges in Nigeria, people thought that Nigeria Government would embrace it and as well follow South Africa’s steps to regulate cryptocurrency. but instead, the Nigerian government has taken another step backward.
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Should Nigerians be Worried?
Surely some already known established cryptocurrencies companies would be affected and some other platforms, as they would not be able to process naira to cryptos transactions within the country.
Even though the CBN circular may have many interpretations, It is yet unclear how Banks would address the directives. It is important for Nigerians to understand that cryptocurrency was originally designed to be a decentralized peer-to-peer mode of transaction. So, the directives from the FG/CBN would only affect the transaction of Naira to Cryptos. The Federal Government of Nigeria can pass a law to regulate cryptos but can not in their power ban the usage of Cryptocurrency. Many developed counties have tried to regulate cryptocurrencies in the last 10 years, But all of them are now embracing it. Paypal CEO in 2016 on a national TV called bitcoin shit, today he has embraced cryptos.
Cryptocurrency is digital money and has come to stay. The earlier the Federal government of Nigeria accepts and embrace It, the better it is for them.
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Can the Nigerian Government Stop Bitcoin or Any other Cryptocurrency?
No, They can’t, but they can regulate its use.
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