The Federal Government has blocked crypto currency transactions in the country for allegedly aiding criminal activities.
The magazine however learnt that the ban on crypto platforms may not be unconnected with the ongoing efforts to save the Naira.
Top ministry and CBN officials are not happy that the crypto sites are being used to undermined the naira by speculating its value against the American dollar, sources said.
According to sources who spoke yesterday, the federal government has ordered the telecommunications companies in the country to block crypto transactions on their platforms.
In response, the magazine learned that top telecoms firms such as MTN, Glo, Airtel, 9 Mobile, amongst others have banned major crypto currency websites such as Binance and OctaFX on their platforms.
But major crypto website Binance said on Tuesday that that it’s working with the federal government to stabilise Nigeria’s foreign exchange market
“As industry leaders, we are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance,” Binance said in a statement.
The website had two days ago disabled sell option for its Nigerian users, blocking them from selling fiat currency, USDT, on the platform, aside from capping the buy option to $1802 for Nigerian users.
It also disabled purchase of cryptocurrencies via P2P for its Nigerian users, leaving those who might want to sell their crypto assets such as Bitcoin, BNB, Ethereum via P2P stuck.
“More serious measures will be demanded from these platforms in the future for any review to happen, if any at all,” a top source in the Presidency said on Thursday.
The development is coming less than three months after the Central bank of Nigeria, CBN, reviewed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto transactions.
The CBN had in a circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003, and signed by the apex bank’s Director, directed commercial banks to allow their customers to trade in Virtual Assets
.
The circular read in part: “The CBN, in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.
“However, current trends globally have shown that there is a need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPS to be regulated to prevent misuse of virtual assets for ML/TF/PF.
“Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognises VASPs as part of the definition of a financial institution.
“In addition, the Securities and Exchange Commission in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPs to provide a regulatory framework for their operations in Nigeria.
“In view of 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. “
The circular was signed by the Head, Financial Policy and Regulation Department, Haruna Mustafa.
