Nigerians all over the country have lambasted the Central Bank of Nigeria for allegedly banning financial institutions from processing cryptocurrencies. In a letter addressed to all deposit money banks, and financial institutions, the CBN stated that “dealing in cryptocurrencies…is prohibited”. The CBN also stated that any breach in the directive will attract a severe regulatory penalty.
The letter reads:
“Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.
“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within tier systems and ensure that such accounts are closed immediately. Please note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect.”
The letter was signed by Bello Hassan, Director of Banking Supervision.
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Twitter users have lambasted the CBN for the alleged ‘ban’ and have criticised the rationale behind the decision.
Gokada was killed. Max and other start-ups like them were killed. Over one year on, okadas are back thriving. But the foreign investors that put money in those Nigerian startups learnt never to put their money in Nigeria again. One morning, one letter, no warning. Death. pic.twitter.com/xRoRYeX2Lm
— JJ. Omojuwa (@Omojuwa) February 5, 2021
Luz said, “My bank called me threatening to flag my account if I use it to transact further with crypto exchanges.”
Author, Japhet Omojuwa expressing his concerns tweeted, “Young Nigerians and FinTech are being targeted. No conversation, no consultation…— Punch Newspapers (@MobilePunch) February 5, 2021
just an atomic bomb on entire companies and ecosystems.
Popular Twitter user, Dr Dipo Awojide tweeted, “It looks like the success of young people is a threat to the Nigerian state. Several government policies damage businesses and create unemployment as against…— Punch Newspapers (@MobilePunch) February 5, 2021
Social media users have been bashing the decision of the CBN and how it will affect the financial technology industry.
Village Parrot tweeted, “Omooooo, what the hell is that letter from CBN? Why is this government so wicked!?”— Punch Newspapers (@MobilePunch) February 5, 2021
Victor Asemota while sharing the letter on his Twitter handle captioned it, “We went back to the stone age again.”
Another Twitter user, Nathaniel Luz even revealed that his bank had called to threaten him. Replying to Asemota’s tweet…— Punch Newspapers (@MobilePunch) February 5, 2021
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