Banks begin closure of Cryptocurrency accounts
After the Central Bank of Nigeria (CBN) instructed the bank to close its account, cryptocurrency traders have started offline operations outside of the approved trading platform.
The founder and head of Rume Ophi Cryptoreacher Blockchain Academy said yesterday that commercial banks have notified cryptocurrency traders of the CBN order and subsequent account closure.
CBN on Friday instructed depository banks (DMB), other financial institutions (OFI) and non- bank financial institutions (NBFI) local financial institutions to close accounts belonging to cryptocurrency operators.
She said that after closing the account, traders were trading outside the exchange platform because they were no longer able to make payments through channels connected to the financial system.
The bank has sent us a message that Bitcoin payments will no longer be processed. I have funds on my platform, and due to what happened, I don’ t plan to change it to naira anytime soon. I will spend a long time with the funds. I know that from now to the next ten years, the naira will continue to depreciate. He said that this happened in Kenya and the same plan was adopted and implemented.
Ophi stated that cryptocurrency traders met with the Securities and Exchange Commission (SEC) in January on how to regulate their business, but were eventually suppressed by the CBN.
“I think the government has not seen the reality of today’ s world. This is technology, and you can’ t fight against technology. Agree that technology has its downsides, and they should be advised appropriately. The SEC treats cryptocurrency as a financial instrument. I was a member of the committee that met with the SEC a month ago to study how to make regulations. We hardly knew that CBN would come and hit us.
She said that the steps taken by CBN will make it difficult for cryptocurrency investors to enter Nigeria, and that foreign investors will no longer place cryptocurrency exchange platforms in the country. Similarly, companies that already have communication platforms in Nigeria will also be affected.
“In addition, before that, the customer only had to load the Naira card into his card and pay through the platform. Now the transaction will take place outside the trading platform, which is the situation before the platform entered the country. Payment platforms benefit many young people. New entrants believe that the money they used to process the payment is safe, but after the CBN is cancelled, this will no longer happen.
At the same time, Binance is one of the largest cryptocurrency exchanges in the market by trading volume, and Binance has removed Naira from its trading pairs. In a statement posted on its website, Binance advised users to transfer their peer- to- peer wallets for transactions.