The nigerian central bank in a recent disclosure has said it is considering a ban on some crypto websites in the country, major sources revealed.
CBN shuts down nigeria crypto websites
Earlier today reports suggested that the CBN in conjunction with relevant government authorities had allegedly ordered binance to set a minimum rate for sale of usdt.
Tokens can no longer be sold above 1802/$, the report suggests, a potential move by cbn to shuts down nigeria crypto websites
Cryptocurrency – A New Legal Tender in Nigeria
Shortly after the emergence OF DIGITAL CURRENCIES, the use of cryptocurrencies has been widely adopted by millons of nigerians due to its numerous advantages.
Top crypto analysts and financial experts in Nigeria describes crypto as the new legal tender” with massive adoption.
Although some series of regulations were rolled out by the Nigerian Government over the past few years, most of the regulations eventually got suspended.
Here are some key points regarding CBN regulations on cryptocurrency:
- Cryptocurrency Ban by CBN: In February 2021, the CBN issued a circular to banks and financial institutions directing them to close accounts linked with cryptocurrency trading platforms. This effectively banned banks from facilitating cryptocurrency transactions.
- Justification for the Ban: The CBN cited concerns about the use of cryptocurrencies for illegal activities such as money laundering, terrorism financing, and other criminal activities. They also raised issues about the lack of regulation and investor protection in the cryptocurrency market.
- Impact on Crypto Trading Platforms: The CBN’s directive had a significant impact on cryptocurrency trading platforms operating in Nigeria. Many platforms had to shut down or suspend their services, while others sought alternative payment methods to bypass the banking restrictions.
- Legal Challenges: The CBN’s ban on cryptocurrency transactions faced legal challenges from individuals and organizations within Nigeria. Some argued that the ban violated their rights to trade and conduct business freely.
- Potential Revisions: Despite the ban, there have been discussions within Nigeria about the need to regulate rather than prohibit cryptocurrency transactions. Some policymakers have advocated for a more balanced approach that addresses the risks associated with cryptocurrencies while allowing for innovation and investment in the sector.
