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Nigeria Shutting Down All Cryptocurrency Accounts

With our society and global culture making the clear move to a cashless existence, one would think that the promotion of stocks, Bitcoin and other Cryptocurrency would be at an all time high; not for our friends in Nigeria. The Central Bank of Nigeria(CBN) has ordered all banks to close any accounts transacting with Cryptocurrencies.

One of the largest economies in the Continent of Africa is the Cryptocurrency trade, but CBN has been warning Nigerian banks and citizens that the currencies are not regulated and aren’t considered legal tender in Nigeria. In a statement posted on their website they stated, "The bank hereby wishes to remind regulated financial institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited." Not only are the banks and financial institutions expected to shut down all trading and buying of these currencies, but they are also directed to identify people or entities involved in cryptocurrency exchanges. Any bank or person not following this directive will be subject to sanctions.

Digital currencies are very popular in Nigeria because they are seen as an easier way to conduct business in a space that is known for corruption, currency fluctuations, and their history of being sidelined by the global financial system.

The CBN has been issuing this warning since 2017 that the cryptocurrencies are not authorized but not to tis extent. The main threat that has been given before now is that the traders and investors were at risk because they are not protected by the law.