Nigeria’s Central Bank Claims Crypto Trading Hasn’t Been Banned

Nigeria’s central bank claims that crypto trading hasn’t been banned according to the announcement made by the Senior official who explained that financial institutions are the ones that cannot trade with crypto companies but people can. But, let’s find out some more in our latest cryptocurrency news today.

The Nigerian Central Bank official reiterated that there’s no ban on crypto trading in the region. The bank, however, remains barred from dealing with crypto companies.
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The senior official from the Central Bank of Nigeria rejected the claims that the bank banned crypto as the CBN official Adamu Lamtek said that the bank protected the banking sector from cryptocurrencies but didn’t ban crypto trading itself.

The clarification came a month later after Nigeria’s central bank told all banks to cancel all crypto-related services for customers that sell, buy or trade crypto but it isn’t clear what prompted the bank’s decision:

 “The CBN did not place restrictions from use of [sic] cryptocurrencies and we are not discouraging people from trading in it. What we have just done was to prohibit transactions on cryptocurrencies in the banking sector.”

Lamtek spoke on behalf of the governor of the bank Godwin Emefiele and disclosed the decision at a recent meeting for journalists held by the bank in the city of Abuja. These statements however should not be taken that the government is endorsing crypto. The Central Bank has no jurisdiction over who can trade crypto to start with according to the CEO of investment company Dan Holdings, Danny Oyekan. Crypto is still under the jurisdiction of Nigeria’s Securities and Exchange Commission as back in September, the SEC announced more plans to regulate the sector by deeming crypto securities until proven otherwise.

Despite the regulatory uncertainty, Nigeria is often called the Bitcoin Nation of Africa because the country’s crypto trading volumes outpace most other countries in the world. It’s been a month since the bank put a ban on the financial institutions that deal with crypto companies. However, the crypto industry isn’t gone, as Oyekan said:

“The industry has shown resilience and quickly adapted by developing peer-to-peer exchanges. That’s not an easy feat to accomplish in 1-2 months.”

Nigeria’s central bank claims there’s no ban on crypto as OTC deals are still underway and the informal market is also growing:

 “So basically, the ban only forced the fiat channels underground.”