Supply Reveals Why CBN Ban Cryptocurrency Buying and selling

cryptocurrency

A member of the Financial Safety Committee (MPC) has revealed that the Central Financial institution of Nigeria (CBN) under no circumstances prevented any specific particular person from dealing in cryptocurrency.

Naija News remembers that the Central Bank of Nigeria (CBN) has ordered banks in the country to shut down the accounts of cryptocurrency traders.

The CBN in its directive, educated Deposit Cash Banks (DMBs), Completely completely different Monetary Establishments (OFIs), and Non-Financial institution Monetary Establishments (NBFIs) native monetary establishments to cease any transactions in crypto or facilitating funds for crypto exchanges.

The apex financial institution all through the spherical signed by Director of Banking Supervision, Bello Hassan, and Director, Funds System Administration Division, Musa I Jimoh warned that disobedience to the directive will entice sanctions.

“Breaches of this directive will attract severe regulatory sanctions,” the CBN warned.

Talking to TheNation, the MPC member outlined that what the CBN meant by the spherical was deposit cash banks beneath its purview can not partake in cryptocurrency due to it might likely be unlawful.

“CBN is also concerned that bitcoin valuation is excessively speculative, akin to betting, and it will not make sense to run a currency system based gambling,” he mentioned.

“Why people will come charging on CBN Governor Godwin Emiefele over banning banks from digital currencies is inexplicable. Bitcoin and other variants of digital currencies are not only unregulated the world over, but they are now used as weapons by cybercriminals.”

He recalled that the final word time cybercriminals hijacked the buyer database of thought-about considered one of many Nigerian banks, they demanded ransoms in bitcoin before they launched the database.

“And since bitcoin addresses are psedonymous, it is not possible to trace them. The CBN cannot fold its arms and see cryptocurrency destroy the entire banking system with all the unsavoury consequences of banking crisis and bailouts. Turkey had also banned bitcoin because it was becoming a channel for money laundering on an unimaginable scale,” he mentioned.

“So, if any Nigerian wants to deal in digital currencies, bitcoin, or whatever, such person is free to do so, only that there is no platform for a cryptocurrency payment system. Accordingly, such a person could as well go to wherever such platform is legalized since the bitcoin market is virtual 24/7,” he mentioned.

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