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Nigerians are free to trade Bitcoin and other cryptos, says CBN

20 Mar 2021 : 17:48
2 min read
  • CBN said Nigerians are free to trade Bitcoin and other cryptos
  • The bank claimed it never banned crypto trading activities
  • The CBN’s directive was to protect the banking system from crypto activities

Nigeria is one of the leading countries in terms of cryptocurrency users, but the central bank banned crypto trading activities earlier this month. The move affected cryptocurrency trading and investment in the country, as most people turned to P2P platforms.

CBN never banned crypto trading

The Central Bank of Nigeria (CBN) had clarified that Nigerians are free to trade Bitcoin and other cryptocurrencies. According to the CBN, there was no time it banned cryptocurrency activities in the country.

The CBN Governor, Godwin Emefiele, who was represented by Adamu Lamtek, Deputy Governor, Corporates Services, made this known earlier today in Abuja at the 30th seminar for Finance Correspondents and Business Editors.

The CBN said it never banned cryptocurrency trading or investment in Nigeria. Instead, what it did was to protect the banking sector from the activities of digital currencies. Lamtek stated that “The CBN did not place restrictions from 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.”

Last month, the CBN issued a directive to all banks in the country to disable accounts linked to cryptocurrency service providers. The move made it tough for Nigerians to buy or sell cryptocurrencies using their bank accounts or debit cards. Several social media reports suggest that the banks closed some crypto traders’ accounts.

Cryptocurrency traders and investors in the country turned to peer-to-peer platforms as they didn’t want to miss out on the rising adoption of digital currencies. Nigerians are forced to look at Bitcoin due to the rising inflation and regular devaluation of the Naira by the central bank.

Asad Saddique

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