Crypto News

Central Bank Of Nigeria Denies Banning Cryptocurrency Trading

Central Bank of Nigeria denies banning cryptocurrency trading

Los Angeles (CoinChapter) – Godwin Emefiele, governor of the central bank of Nigeria (CBN), has clarified a statement he issued last month. That seemed to insinuate financial institutions were no longer permitted to allow cryptocurrency trading.

CBN deputy governor Adamu Lamtek, speaking on behalf of Emefiele, noted the directive is not to be mistaken for an outright ban. Instead, the bank said it is reviving an already imposed 2017 ban on institutions facilitating cryptocurrency transactions.

“The CBN did not place restrictions from use of cryptocurrencies. And we are not discouraging people from trading in them.” Said Lamtek, who was speaking at the 30th seminar for Finance Correspondents and Business Editors in the capital, Abuja.

He added: “What we have just done was to prohibit transactions on cryptocurrencies in the banking sector.”

The statement follows the CBN announcing last month that it had placed a ban on all regulated financial institutions. From providing services to crypto exchanges in the country.

The ban directed all banks to close accounts belonging to crypto exchanges and other businesses transacting in cryptocurrencies in Nigeria. Warning of “severe regulatory sanctions” for any institution in breach of the rule.

Emefiele previously referred to cryptocurrencies as “not legitimate money.” With no place in Nigeria’s monetary system. However, the governor said the bank was doing its due diligence to better understand how cryptocurrencies work.

Many regulators and crypto enthusiasts in Nigeria have criticized the ban. With some lawmakers in the Nigerian Senate proposing the idea of inviting Emefiele to a hearing to discuss issues related to crypto regulations in the country.

Crypto holders in the country also angrily took to social media seeking clarification. In response, the CBN provided a statement that included a pledge to protect Nigerian citizens from the risks of cryptocurrencies.

How has Bitcoin performed since the CBN introduced the crypto ban?

Since the CBN introduced the crypto ban, the price of Bitcoin has shown no signs of slowing down. It is currently trading at $57,349 in the United States. Additionally, data from crypto exchange Luno currently shows BTC has risen to a more than 70% premium in Nigeria at a price of $97,509.

How useful was this post?

Click on a star to rate it!

Matt Borelli

Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.

Related "Cryptocurrency" News

Coinbase Beats Crypto-Friendly Intercontinental Exchange In Wall Street Debut
Coinbase Global Inc. delivered an $86 billion valuation in its trading debut on Wall Street, beating bigger and older...
Exodus Raises Nearly $60 Million In Public Offering
Los Angeles (CoinChapter) – Crypto wallet provider Exodus raised just under $60 million from investors in a successful regulated...
Coinbase (COIN) Stock Receives Reference Price Of $250
Los Angeles (CoinChapter) – Major United States-based crypto exchange Coinbase (COIN) has received a reference price of just $250...
Filecoin Hardfork Upgrade To Be Supported By Binance
Los Angeles (CoinChapter) – Major cryptocurrency exchange Binance announced that it will support the activation of the Filecoin (FIL)...
Kraken Considering Going Public In a 2022 IPO Motivated By Record Volume
Long Beach (CoinChapter): Crypto exchange Kraken is considering going public through a direct listing in 2022. The decision is...
Bank Of Thailand To Pilot CBDC In 2022
Los Angeles (CoinChapter) – The Bank of Thailand revealed plans to begin tests on a retail central bank digital...