Although the cryptocurrency industry is now one of the most adopted online trading industries, yet it gets into a pickle every now-and-then. Whether it is the United States of America, India, or the United Kingdom, the industry ends up finding trouble in some parts of the world.
As per the latest reports, the industry is now going to face a problem from the highest populated country in Africa “Nigeria”. According to sources, the Central Bank of Nigeria has issued very strict orders against the cryptocurrencies in the country.
The Central Bank of Nigeria has just imposed a ban on any activities related to cryptocurrencies in the country. A circulating memo has already been composed and released by the Central Bank of Nigeria for immediate implementation.
In the light of the above, none of the private, government, or semi-government sectors would be able to buy or sell cryptocurrencies in the country.
Furthermore, the Central Bank of Nigeria has also ordered the banks to close all the bank accounts that are linked with cryptocurrency platforms.
The memo issued by the Central Bank around the banning of cryptocurrencies was signed by Kevin Amugo. Kevin Amugo, the Director of Finance and Policy at the Central Bank of Nigeria had signed the memo back in 2017.
The memo signed by Amugo was a warning against the usage of cryptocurrency and digital assets that are unregulated. The memo highlighted that due to the very decentralized and unregulated nature of these assets, they would end up facilitating many risks. The risks highlighted in the circular memo included “Terrorism Financing” and “Money-Laundering”.
The memo has been brought into play after the issuance of the new circular, which is the work of Central Bank’s Banking Supervision Department. The new circular memo tends to perform a strict follow-up of the recent warnings that were highlighted back in 2017.
Therefore, in the light of the above, the Central Bank has already issued orders to all banks that have clients engaging with cryptocurrencies. The orders have been issued to banks such as Non-Bank Financial Institutions (NBFI), Other Financial Institutions (OFI), and Deposit Money Banks (DMB).
The orders from the Central Bank of Nigeria instruct banks to close all crypto-linked accounts to avoid facing any sanctions.
The latest implementation of the cryptocurrency ban in Nigeria comes as dark news for the crypto-users in the country. Nigeria had turned out to be one of the most prominent countries in entire Africa in terms of crypto-adoption. Even Google had to admit that the most amount of searches made around cryptocurrencies were made by Nigerians.
Unfortunately, the cryptocurrency ban will put a huge void in the crypto-adoption rate in the entire country.