With the increasing regulatory restrictions and other bottlenecks operators and patrons of cryptocurrency exchange platforms have to contend with, there are clear and present dangers that the cryptocurrency market may be jinxed in Nigeria after all, reports Ibrahim Apekhade Yusuf
While making oblique reference to the clampdown of cryptocurrency exchange platforms by the government in recent times, Korede said such open malice casts a slur and presents the country as one where the investment climate is toxic especially to novel ideas like the cryptocurrency and may actually send the wrong signal to the global community.
It stressed that such currencies are not accepted as legal tender in Nigeria because of the anonymity of virtual transactions. “Given the foregoing, the CBN hereby issues this guideline to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria.”In a circular dated July 25, 2023, the CBN directed banks to lift the post-no-debit restriction placed on accounts of a popular crypto exchange, Yellow Card Financial and 439 other individuals and companies.
In an update in the circular to deposit money banks, the CBN, without giving reasons, ordered that the financial institution should vacate the Post-No-Debit restriction placed on their accounts. “A substantial portion of the population lacks adequate financial literacy, making them vulnerable to scams and risky investments.”
According to Agama, despite economic challenges, the country has emerged as one of the leading countries globally in terms of crypto adoption and volume of transactions. While attempting a prognosis of the cryptocurrency crisis, she observed that Nigeria’s approach to regulating crypto-asset transactions has been unclear and inconsistent.
While admitting mstteroffactly that cryptocurrencies have had a long history of being used in illegal activities like money laundering and the drug trade, she however said they have not been linked with the devaluation of national currencies, as the Nigerian government has alleged.To be sure, she said the first step would be to register whoever is dealing in digital instruments.