Nigeria’s interest in bitcoin drops.

The hammering of the Federal Government on cryptocurrency continues as KUDA bank,
Guaranty Trust Bank and FCMB become the latest banks to freeze customers’ account.
Why does it matter?
On February 5, 2021, the Federal Governor of Nigeria through the Central Bank released a statement ordering all financial institutions to seize facilitation of all crypto transactions.
The Big Picture.
In recent times, KUDA bank, GT bank and First City Monument Bank have been the latest to seize accounts of customers who have allegedly engaged in crypto trading of any kind. These banks have gone beyond the jurisdiction of freezing crypto activity on bank accounts and have frozen accounts for claims of fraud.
A memo sent by the Central Bank to all financial institutions says thus “accounts with high- volume transactions operated by individuals between the age brackets of 18-30 years as signatories should be flagged for possible fraudulent activities by staff members.”
The memo furthers explains that bank staffs should be on the lookout for red flags on accounts
“In order to make the Bank safe and protected from the activities of criminals, organized gangs, money launderers and terrorist financiers.”
Two individuals, namely, Nnamdi Francis Okereke and Nwaorgu Kingsley Chibuzor and a company TVS Hallmark Service Limited, are the latest victims of the crypto regulations by the Federal Government. A spokesperson for the CBN, Osita Nwanisobi said “banks were not asked to enforce the ban on cryptocurrencies on the basis of age or other forms of discrimination”.

Leave a Reply

Your email address will not be published.