Reports reaching Nairametrics point out banks are nonetheless sending warnings to their clients to keep away from utilizing their accounts for cryptocurrency transactions.
This comes on the heel of the lately launched SEC regulation on cryptocurrency, which basically formalized cryptocurrency as an asset class in Nigeria.
In an e-mail seen by Nairametrics shared with the financial institution’s clients, it warned against utilizing their financial institution accounts for cryptocurrency transactions because the accounts might be closed if they’re caught.
What the e-mail said
The e-mail said, “Further to its earlier communication that dealing in Cryptocurrencies or facilitating funds for Cryptocurrency exchanges is prohibited, the Central Bank of Nigeria (CBN) has in its letter with reference quantity BSD/DIR/GEN/LAB/14/001, dated February 5, 2021, directed that each one banks, non-bank monetary establishments and different monetary establishments ought to determine individuals and/or entities transacting in or working Cryptocurrency exchanges inside their methods and be certain that such accounts are closed instantly.
“In line with the CBN directive, kindly note that any account identified as transacting in or operating Cryptocurrency exchanges within our system will be closed immediately.”
That the round was despatched out this month suggests the CBN continues to be cautious of cryptocurrencies regardless of the motion of the Security and Exchange Commission. Nairametrics had earlier reported that business banks sometimes PND (submit no debit) of shoppers after they see transactions akin to cryptocurrency particularly if the outline recommend something in that course.
What it is best to know
- The CBN instructed monetary establishments to cease honouring crypto-related transactions final 12 months, on the fifth of February 2021, with many crypto exchanges and market individuals having to modify to the P2P market in different to take part in the market.
- There was additionally an account closing spree by banks in the direction of the tip of the 12 months, particularly with Kuda Bank, the place P2P gamers’ accounts had been closed down because the clamp down on participation in the trade intensified.
- Earlier this 12 months, the CBN fined 6 banks, a complete of N1.315 billion for failing to adjust to laws prohibiting clients from transacting in cryptocurrencies.
- The SEC lately launched a regulatory framework across the crypto trade, spelling out the necessities and guidelines for governing and taking part in the area.
- With this new round, it appears to be like like there’s a important disconnect between the CBN and SEC as they seem to not be on the identical web page concerning the crypto area.
- Despite the ban, information recommend that Nigeria continues to be one of many prime international locations in phrases of crypto adoption in the world. Asides from this, the nation leads African nations in phrases of P2P transactions.