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Central Financial institution of Nigeria bans banks from servicing crypto exchanges

02/05/2021

Nigeria’s central financial institution has prohibited industrial banks from offering account providers to crypto exchanges.

The Central Financial institution of Nigeria has positioned a ban on all regulated monetary establishments from offering providers to crypto exchanges within the nation.

The prohibition was contained in a round issued by the CBN on Friday. In keeping with the central financial institution’s discover, the ruling is an extension of earlier warnings from the financial institution in regards to the dangers related to digital currencies.

Supply: Twitter

As a part of the ban, the CBN has directed all industrial banks to shut accounts belonging to crypto exchanges in addition to different companies transacting in cryptocurrencies within the nation.

The CBN additionally warned of stiff penalties to any financial institution or monetary establishment that fails to adjust to the directive.

Nigeria’s central financial institution didn’t reply instantly to Cointelegraph’s request for feedback on the problem. Nonetheless, in a earlier piece of correspondence, Osita Nwanisobi, performing director of the CBN’s communications division instructed Cointelegraph that industrial banks had beforehand been warned to not take part within the crypto market.

Whereas cryptos have been well-liked in Nigeria, digital currencies got here into nationwide consciousness amid the protests in opposition to police brutality in October 2020. On the time, the central financial institution ordered the suspension of financial institution accounts belonging to supporters of the ENDSARS motion prompting a change to Bitcoin (BTC) and crypto donations.

As beforehand reported by Cointelegraph, Bitcoin adoption in Nigeria continues to extend. In keeping with knowledge from Google Tendencies, Nigeria continues to be primary on the planet when it comes to search curiosity for Bitcoin.

The CBN’s ban can be harking back to the actions taken by its Indian counterpart, the Reserve Financial institution of India, again in 2018. Two years later, India’s Supreme Courtroom reversed the order.

Aside from the CBN ban, the one different crypto-related regulatory information to come back out of Nigeria was again in September 2020. On the time, the Nigerian Securities and Alternate Fee acknowledged crypto as securities with plans to formulate a concrete authorized framework for digital property.