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Binance halts deposits in Nigeria Post Central Bank’s mandate

Binance halts deposits in Nigeria Post Central Bank's mandate

Binance has temporarily halted deposits in Nigerian naira, the country’s local fiat currency. This is in acknowledgment of a Friday letter from Nigeria’s Central Bank (CBN). It is directing local banks to recognize and close all accounts attached to cryptocurrency platforms or operations. In a statement, Binance declared its Nigerian Naira payment partners suspended deposit services until further notice, commencing from 7 p.m. local time (GMT+1) as of Friday, continuing to monitor the situation closely.

Further, in a letter mandate, the Central Bank of Nigeria directed all banking and other financial institutions. It warned them that it has “prohibited” to facilitate crypto transactions. According to the mandate, banking institutions have to identify citizens and other influential users of cryptocurrency and block their bank accounts. Bello Hassan, the Director of Banking Supervision, and instructed all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFs), and Other Financial Institutions (OFIs) signed the letter in Nigeria to comply with the mandate rigorously.

Nigeria’s Central Bank opposes cryptocurrencies

Moreover, the Central Bank of Nigeria also elucidates that if banks do not implement the rule, they will suffer stringent regulatory sanctions. Nigeria’s Central Bank has denied employing Bitcoin and other cryptocurrencies for several years, notwithstanding their elevated demand. The central bank first published a circular in January 2017. The circular advised banks and all other financial institutions regarding the “risk” connected with cryptocurrency transactions.

According to the IMF’s estimates (International Monetary Fund), Nigeria is the world’s 27th largest economy. The recent ruling on crypto may entirely ignore the nascent technology in the fast-developing African nation. To date, the CBN has not offered an official cause for the immediate order to spread panic within social media. 

Nigeria is the most advanced government to regulate space. However, India is once again contemplating a ban on private cryptocurrencies. Meanwhile, the ECB (European Central Bank) president, Christine Lagarde, stated that Bitcoin facilitates questionable transactions. He further said that the crypto requires regulation on a global scale.

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