CBN instruct banks to close accounts related to Crypto

The leader of the world’s biggest crypto exchange, Changpeng Zhao recently disclosed that Binance was complying with Nigeria’s Apex bank directive and has disabled deposits to prevent more NGN from coming in.

To err on the safe side, we have also disabled deposits to prevent more NGN coming in.

— CZ 🔶 Binance (@cz_binance) February 5, 2021

The highly revered crypto leader updated its clientele base by notifying them via Twitter it received notice from channel partners that NGN deposits and withdrawals will be affected.

READ: Bad times for XRP, as Coinbase suspends XRP trading

What this means: Changpeng Zhao anticipates that the Nigerian banks will stop working with Crypto exchanges in line with the Nigerian Apex bank directive, meaning  P2P trading will likely flourish as a result.

• He further advised Nigerian customers to withdraw their local denominated deposits as early as possible to avoid potential channel issues.

That said, many Crypto pundits are of the opinion that although the Central Bank’s recent directive does not criminalize ownership of crypto. The circular will however make it difficult for them to process debit, credit card, and bank transfer transactions taking into consideration most fintech startups usually partner with Deposit Money Banks, Non-Financial Institutions, other financial institutions like Paystack, Flutterwave, Korapay to transact with Nigerian bank customers.

READ: Number of rich investors buying Bitcoin in 2021 on a record high

Also, Nigeria’s fast-growing crypto exchange, Quidax  issued a press release on the CBN’s new instructions regarding crypto payments,

“We have seen CBN’s new policy but don’t worry your funds are safe and trading continues as usual. However, all Naira deposits have been temporarily paused as CBN’s policy affects our payment partners.
Thank you for your support,” Quidax stated.

Hey Quidaxians,
We have seen CBN’s new policy but don’t worry your funds are safe and trading continues as usual.
However, all Naira deposits have been temporarily paused as CBN’s policy affects our payments partners.
Thank you for your support.

— Quidax (@QuidaxAfrica) February 5, 2021

In addition, a Nigerian-based crypto exchange, Buycoins Africa has assured its clients via its Twitter handle, disclosing their funds were in good hands thus further assuring the public that the fintech company would ensure its services were compliant.

“Thanks to everyone who has reached out. We are fully aware of the newest CBN circular and are going to be working with regulators to ensure our services are compliant. All trading on our platforms continues as usual, and all user funds are safe,” BuyCoins tweeted.

READ: CBN issues modalities for payout of diaspora remittances in dollars

Thanks to everyone who has reached out. We are fully aware of the newest CBN circular and are going to be working with regulators to ensure our services are compliant. All trading on our platforms continues as usual, and all user funds are safe.

— BuyCoins (@buycoins_africa) February 5, 2021

Furthermore, Bundle, a social payments app that offers crypto support, also disclosed that it was fully aware of the newly issued CBN directive and stated that customers’ funds remained safe as usual.

Here is an excerpt of Bundle Africa’s statement as regards the Nigerian apex bank’s directive recently issued;

“We’re aware of the notice on cryptocurrency-related Naira payments shared by the CBN today.

“Trading has not stopped and your assets remain as safe as ever. We are monitoring the situation closely and we’ll share updates as we have them. Thank you for your support!.”

READ: CBN grants approval for banks to debit accounts of loan defaulters 

Our message to all dear Bundlers. pic.twitter.com/L7BUpXL0J7

— Bundle (@BundleAfrica) February 5, 2021

In case you missed it

Recall, the Central Bank of Nigeria had recently notified Deposit Money Banks, Non-Financial Institutions, other financial institutions…