The cryptocurrency industry is currently valued at a high of $1.18 trillion. While governments have been steering towards the industry, Nigeria seems to be moving away. The country had previously recorded increased crypto activity, which led to several platforms venturing into its markets. But, the latest decision by the Nigerian government wasn’t very favorable for the crypto-verse.
Nigeria’s Latest Move Causes Unrest In The Crypto-Verse
In a recent letter, the Central Bank of Nigeria revealed that all the financial institutions like banks in the country were to close all the accounts that had a history in carrying out cryptocurrency transactions, at the earliest. The letter read,
“Accordingly, all DMBs, NBFIs, and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency [sic] exchanges within their systems and ensure that such accounts are closed immediately. Please note that breaches of this directive will attract severe regulatory sanctions.”
While Binance recently rolled out a platform exclusively for the citizens of Nigerians, the exchange decided to reciprocate to the latest news by suspending Nigerian naira [NGN] deposits. In a recent blog post, Binance announced that all the deposit services of NGC payment partners on the exchange would be temporarily suspended starting from 5 February 2021. Binance revealed that it was looking into the matter and would lift this temporary suspension as soon as it receives clarity on the matter.
Changpeng Zhao aka CZ, the CEO of Binance also commented on the same. He tweeted,
“Received notice from our channel partners that NGN deposits and withdrawals will be affected. Still confirming details on when/how. Please withdraw your NGN as early as possible to avoid potential channel issues. Will share more details as they become available.”
Just when the entire crypto market was seen on a rise, Nigeria’s latest restriction could curb the benefits that its citizens could bag.