Crypto Trading Activities Not Ban in Nigeria – CBN Clears Air

The Central Bank of Nigeria, CBN has clarified that the apex bank did not ban Crypto trading and cryptocurrency activities in the country.

The Governor of CBN, Godwin Emefiele, disclosed this today, in Abuja, at the 30th seminar for Finance Correspondents and Business Editors which was organised by the bank.

Emefiele, who was represented by Adamu Lamtek, Deputy Governor, Corporates Services, said what the bank did was to protect the banking sector from the activities of Cryptocurrencies and not a ban on its activities.

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“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,” Lamtek said.

Recall Business Remarks reported that, according to a circular dated 5th February 2021, Central Bank of Nigeria (CBN) has directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

Furthermore in reactionns to controversy generated over the ban, the Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele says the Bank’s decision to prohibit deposit money banks, non-banking institutions, and other financial institutions from facilitating trading and dealings in cryptocurrency is in the best interest of Nigerian depositors and the country’s financial system.

Emefiele also emphasized that the Bank’s actions were not in any way, shape or form inimical to the development of FinTech or a technology-driven payment system. On the contrary, he noted that the Nigerian payment system had evolved significantly over the past decade, surpassing those of many of its counterparts in emerging, frontier and advanced economies boosted by reforms driven by the CBN.

While urging that the issue of crypto currency needs to be treated with caution, the CBN Governor assured that the Bank would continue its surveillance and deeper understanding of the digital space, stressing that the ultimate goal of the CBN was to do all within its regulatory powers to educate Nigerians on emerging financial risks and protect our financial system from the activities of currency speculators, money launderers, and international fraudsters, Business Remarks reported.