Cryptocurrency

CBN Crypto Ban: The Aftermath

CBN Crypto Ban: The Aftermath

CBN Crypto Ban: The Aftermath

-It’s been over a month since the Central Bank of Nigeria (CBN) issued a directive to ban cryptocurrency exchange in Nigeria

-While some support the Apex bank’s decision to crackdown on the cryptocurrency, others question this decision

-Naija FM analyzes how crypto startups are handling the CBN crypto ban in the country

The Central Bank of Nigeria (CBN) ordered a ban on Bitcoin and other cryptocurrency transactions among financial and non-financial institutions in the country in February.

Many Nigerians were left red-faced by this decision, seeing it as a method of stifling opportunities for youths who are trying to escape poverty.

Before the Apex bank’s directive, crypto startups acted as local exchanges. You could sell cryptocurrency and your payment gets processed into your bank.

Crypto Startups Restratagize

In the aftermath of the ban, many crypto companies have had to reshape their business to accommodate their Nigerian customers.

Exchanges like Binance and BuyCoins have integrated Peer-to-Peer (P2P) systems where traders can exchange crypto for fiat currencies with other traders.

Local businesses like Bundle and Quidax have revealed plans to target other African countries.

One Company, Luno has refused to take the same route by integrating a P2P system for its Nigerian customer base despite the CBN crypto ban.

Luno wants to prove to the Apex bank that it has appropriate controls in place to regulate cryptocurrencies as CBN wants. Traders have confirmed that trading has been paused on the platform.

Crypto traders exchange off-platforms

Apart from P2P exchanges, some traders have taken matters into their hands by exchanging on messaging apps like Whatsapp and Telegram. This method however puts users at risk of being scammed or getting inflated rates.

CBN CRYPTO BAN

Read also: 4 Ways to Bypass the  CBN’s ban on Cryptocurrency

Meanwhile, statistics have shown that Nigerians are very much in the crypto space. There is a weekly exchange of 1 billion Naira which is similar to what the country had before the CBN crypto ban.

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