CBN Bans Cryptocurrency Exchange in Nigeria | See How Everyone is Reacting to the News
The Central Bank of Nigeria on February 5, 2021, released a statement signed by the Director of Banking Supervision Bello Hassan and the Director of Payments System Management Department Musa I. Jomoh, prohibiting financial institutions in Nigeria from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchange.
Meaning all trading of cryptocurrency in Nigeria has been banned, as all Deposit Money Banks, Non-Bank Financial Institutions and Other Financial Institutions have been directed to identify persons and/or entities transacting in or operating cryptocurrency exchange within their systems and ensure that such accounts are closed immediately. The statement added that “breaches of this directive will attract severe regulatory sanctions.”
The use of bitcoins and cryptocurrencies in Nigeria skyrocketed in 2020, especially during the #EndSARS protests when bank accounts of activists like the Feminist Coalition were blocked and other payment platforms for freelancers were banned. This made the disbursement of funds difficult, therefore leading many youths to rely on the use of bitcoins and cryptocurrencies.
Although the reason for this ban is still unknown, Nigerians have taken to social media to express their disapproval with the #WeWantOurCryptoBack as trading of cryptocurrency is a means of livelihood for many young people.
Major advantage of Crypto is you cannot stop it. Little research will have told them:
1. Merchants will ask to be paid directly in crypto
2. P2P exchanges will flourish
3. People will move volumes of crypto & #BTC in hard drives & cold chain storage.
You cannot stop the future!
— Tola (@adetolaov) February 5, 2021
Can’t buy crypto with Bank deposits
Can’t buy Crypto with Visa and Mastercard
Can’t withdraw Crypto to Banks
Nigeria government enough is enough #WeWantOurCryptoBack
— IBOM PLAZA ❤️🇳🇬 (@ItsGreatman) February 5, 2021
As long as you don’t facilitate your crypto deals via any Nigerian financial institutions, you’re safe.
Nigerian government can’t regulate crypto currencies hence they are telling their banks not to facilitate it
No one can regulate a decentralized system, not even the US govt
— Pastor Clinton🌚 (@Zaddy_Clinton) February 5, 2021
The CBN directive to ban Crypto transactions is outrageous. There are so many young people innovating, creating so much despite the hostility of the Nigerian government. This is an assault on all those staking so much in investing themselves in Nigeria.
— Fakhrriyyah (@FakhuusHashim) February 5, 2021
Create jobs? No.
Open Southern borders? No.
Lift the ban on rice? No.
Restructure Nigeria? No.
Sign PIB? No.
Electoral reform law nko? No.
Ban Crypto? Mhmmmm, now you’re talking.
— Josh Foster (@joshfooster) February 5, 2021
Buhari’s Government blocked the account of EndSARS protesters in a bid to frustrate donations that sustained the protests.
Young Nigerians resorted to crypto. The Government had no answer to it. Decentralization.
Buhari does not want a repeat of that.#wewantourcryptoback
— P.article! (@isiomanb) February 5, 2021