Cryptocurrency exchanges in Nigeria have reportedly discontinued Naira (NGN) purchases of two popular stablecoins, USDT (Tether) and USDC (USD Coin), following increasing scrutiny from the country’s central bank.
The Central Bank of Nigeria (CBN) released a circular in February 2021 warning financial institutions against engaging in crypto transactions. The CBN has also closed accounts of crypto traders in the past, illustrating a stance against cryptocurrency in the country. In line with the scrutiny, exchanges like Binance have now officially suspended deposit services for the Nigerian Naira.
This move may affect crypto transactions in Nigeria significantly as users often convert their wealth to stablecoins to escape inflation and economic instability. It might also hinder the opportunity for Nigerians to invest in the growing crypto market and limit the access to other international transactions through these digital currencies.
However, it is still unclear how long this prohibition will last and whether the central bank will change its stance on cryptocurrencies in the future. It is also noted that peer-to-peer cryptocurrency trading is still available, even though it may carry more risk.
Please consider consulting with a financial adviser or conduct more thorough research on recent updates prior to making any investment decisions related to cryptocurrencies.
Crypto Exchanges in Nigeria Cease Naira Purchases of USDT and USDC Amid Central Bank Scrutiny: Report
Cryptocurrency exchanges in Nigeria have reportedly discontinued Naira (NGN) purchases of two popular stablecoins, USDT (Tether) and USDC (USD Coin), following increasing scrutiny from the country’s central bank.
The Central Bank of Nigeria (CBN) released a circular in February 2021 warning financial institutions against engaging in crypto transactions. The CBN has also closed accounts of crypto traders in the past, illustrating a stance against cryptocurrency in the country. In line with the scrutiny, exchanges like Binance have now officially suspended deposit services for the Nigerian Naira.
This move may affect crypto transactions in Nigeria significantly as users often convert their wealth to stablecoins to escape inflation and economic instability. It might also hinder the opportunity for Nigerians to invest in the growing crypto market and limit the access to other international transactions through these digital currencies.
However, it is still unclear how long this prohibition will last and whether the central bank will change its stance on cryptocurrencies in the future. It is also noted that peer-to-peer cryptocurrency trading is still available, even though it may carry more risk.
Please consider consulting with a financial adviser or conduct more thorough research on recent updates prior to making any investment decisions related to cryptocurrencies.
