- The Central Bank of Nigeria has banned banks from providing account services to crypto exchanges.
- The ban came in a circular published by the CBN on Feb 5.
- According to the CBN note, the decision is an extension of earlier warnings from the bank about the risks linked with digital currencies.
Furthermore, Nigeria’s Central Bank said that failure to comply with the directive would end in “severe regulatory sanctions.” The Central Bank’s decision comes after protests in October 2020 against the police’s Special Anti-Robbery Squad’s margins, known as SARS.
At the time, the CBN ordered the closure of bank accounts relating to the EndSARS movement’s supporters, prompting a switch to Bitcoin (BTC) and crypto donations.
Joachim MacEbong, a senior analyst at SBM Intelligence in Lagos, said:
There’s a direct line that can be drawn from the EndSARS protests. This carried on partly with funding from crypto even though CBN restricted several accounts.
According to Joachim MacEbong, this latest instruction will end up making a case for crypto adoption better than any other case. One ensures freedom, while the status quo only reinforces restrictions.