Cryptocurrency has been one of the backbones that many Nigerians rely on, but where there is good, there is always evil. I know many people will not be happy about the new policy that the federal government has put in place, which stands against the peer-to-peer trade.
As of April 23, 2024, a letter from the Central Bank of Nigeria (CBN), which has spread across the country like a wildfire, states that
LETTER TO ALL DEPOSIT MONEY BANKS, NON-BANK FINANCIAL INSTITUTIONS, AND OTHER FINANCIAL INSTITUTIONS
The Central Bank of Nigeria's (CBN) circular of April 23, 2024, ref. FPR/DIR/GEN/CIR/06/010, cautioned deposit money banks (DMBs). Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs), and members of the public on the risk associated with transactions in crypto currency.
Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in crypto currencies or facilitating payments for crypto currency exchanges is prohibited.
Accordingly, all DMBs, NBFIs, and OFls are directed to identify persons and/or entities transacting in or operating crypto currency exchanges in the below list within their systems and ensure that such accounts are put on PND (Post No Debit) instructions for 6 months.
This listed crypto currency platform and the remaining platforms trading NGN currency calls (P2P) are not licensed to operate in Nigeria. which they are under investigation by our financial team together with EFCC.
NOTE: They will be apprehensive of all suspected agents called MERCHANT on the below platforms who are buying and selling USDT illegally. It is the duty of the Central Bank of Nigeria to investigate the economic problems in the country by identifying and arresting the perpetrators who are secretly working with all crypto currency platforms.
Currently, I have no issue with what the government is doing, especially if it means we will have a better country and a better economy. Nigeria experienced its first crypto ban in February 2021, and the ban was lifted in December 2023. With the current circular that's going around, there is a huge possibility of having other trading platforms that are still prohibited in Nigeria from trading NGN P2P.
Binance was the biggest trading platform in Nigeria, and one night, they got banned from trading P2P on NGN. There are other trading platforms that still perform p2p in Nigeria, but if the government can stop Binance, what is stopping it from banning other little crypto p2p platforms?
It is said that Binance was used to launder huge amounts of federal funds out of the country, which are untraceable, and since Binance is refusing to provide the top users and trader names, it was banned, and they also see Binance as a threat to the country's economy.
How Does It Affect Hivers?
One of the major factors that has kept many Nigerians on the hive blockchain is that they can do what they do best, and at the end of the day, there is something that they can take home (a payout). Hive has been a helping hand for many Nigerians, both the working class and the ones who don't have any jobs to do, the ones who focus all their resources on hives. If the ban on P2P takes place, a time will come when the Nigerians will need a payout, and there will be no way to do this. This can lead to many of them forfeiting their account for something that can provide food on their table. Hive is a big blockchain that provides a lot more, but if it is not beneficial to the third party, then a collaboration that was formed might not exist.
Currently, the Central Bank of Nigeria has disowned the letter and circular that were passed around, but with a finishing statement.
They are not stopping any bank from participating in or engaging with any customers that are into crypto, but there is a certainty that there will be a policy to stop all P2P on all crypto platforms in Nigeria.
I hope such a day never comes.
Thanks for reading
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