Directive Only Applies to Banking Sector – Emerging Markets Bitcoin News

by Gordon James

The Governor of the Central Bank of Nigeria, Adamu Lamtek, has reportedly denied that his institution has imposed restrictions on the use of cryptocurrencies. On the contrary, Lamteke, who is Deputy Governor for Corporate Services at the Central Bank of Nigeria (CBN), says his organisation’s directive only applies to the banking sector.

Onlybenches are prohibited

Lamteke’s comments, who spoke on behalf of CBN Governor Godwin Emefiele, follow the central bank’s directive of 5. February 2021, which prohibits banks from allowing cryptocurrency transactions. Immediately after the announcement, financial institutions started to implement the Directive. Since then, volumes on centralized cryptocurrency exchanges have declined, while reports suggest that volumes on peer-to-peer platforms are rising.

At the same time, prior to the recent CBN report, there were rumors that the authorities would soon be encouraging peer-to-peer trading, such as the Binance P2P platform. Lamtek, however, told a seminar for financial correspondents and editors in the country that the CBN directive does not actually prohibit trading in cryptocurrencies.

Following the CBN’s directive to banks to stop facilitating crypto transactions, many leaders in the Nigerian blockchain and fintech industry have reacted and expressed their displeasure. One of those leaders, Adedayo Adedayo, CEO of Jerulida Africa DLT, tells News that after long discussions, many were in favor of regulating the industry rather than a total ban.

CBN has no power to stop P2P trading

As News reports, the CBN’s ban has been challenged by non-crypto parties, including members of the Nigerian Senate and the country’s Vice President Yemi Osinbajo. According to Adebayo, this latest stance by the CBN towards cryptocurrencies could be a response to voices opposing a total ban. Adebayo said:

Let’s not forget that the first attempt was just a tip of the hat, as trading on peer-to-peer platforms continues despite the CBN’s guidelines. It cannot be said that the central bank is no longer subordinate to the government because the financial sector is partially decentralized.

However, if the CBN is unable to halt peer-to-peer trading, Adebajo says this latest clarification is the way forward that we all hope will be followed quickly and widely in further efforts to regulate the sector.

What do you think of the CBN’s clarification that trading in cryptocurrencies is not prohibited? Tell us what you think in the comments below.

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