Nigerians 'flog' gov't after central bank bans cryptocurrency

The Central Bank of Nigeria (CBN) has directed all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs) and Other Financial Institutions (OFls) to close the accounts used for cryptocurrency operations.

The CBN in a circular BSD/DIR/GEN/LAB/14/001 issued on Friday, ordered all financial institutions “to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”

"Any financial institution that breaches this directive the CBN warned: “will attract severe regulatory sanctions.”

According to the CBN, “dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.”

The circular signed by Bello Hassan, Director of Banking Supervision and Musa I Jimoh Director, Payments System Management Department said the order is to take immediate effect.

They also said the apex bank had in the past “cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFls) and members of the pubic on the risk associated with transactions in cryptocurrency refers.”

A section of citizens have taken to social media in protest of the new financial regulation. Below are some 'protest' tweets.

On CBN crypto policy:

1. When you think you only have hammers, everything is a nail. Why is CBN’s response to anything it doesn’t get (from #EndSARS to crypto) to block accounts?

2. Why don’t they engage stakeholders before issuing abrupt policies that rarely solve the problem?

— Tola (@adetolaov) February 5, 2021

If you put all crypto transaction numbers together in Nigeria, they are not up to what people do privately between themselves. Since the CBN blocked Naira deposits, people with bank accounts on both sides have thrived as informal exchanges. THAT is why you don't see dollars.

— Osaretin Victor Asemota (@asemota) February 5, 2021

It just occurred to me that there might be a connection between the new CBN policy on crypto and the #EndSARS protests.

— Mark Amaza (@amasonic) February 5, 2021

The CBN directive to ban Crypto transactions is outrageous. There are so many young people innovating, creating so much despite the hostility of the Nigerian government. This is an assault on all those staking so much in investing themselves in Nigeria.

— Fakhrriyyah (@FakhuusHashim) February 5, 2021

This is one of the most backward circulars ever issued in the history of circulars. These are the things that make entire populations poor and poorer. Almost like a foreign enemy is working to make Nigerians poor, without firing a bullet. A shocking move by the CBN pic.twitter.com/7lzz3IqpdH

— JJ. Omojuwa (@Omojuwa) February 5, 2021

CBN is fighting a lost battle. Others are thinking hard on how to embrace and incorporate the inevitable into everyday life.

We shall see who wins! #Crypto pic.twitter.com/21oiobQhAj

— K.O. | ???????? (@KolaOyeneyin) February 5, 2021

Seeing that Nigeria is the second biggest country in cryptocurrency business, the government and CBN are just pained at the high figures running through Cryto Exchange platforms. They want their own share of the cake and this of course is the way to go about it.

— Wale Adetona (@iSlimfit) February 5, 2021