íàçâàíèå

Nigeria's Central Bank Again Warns on Crypto Investments

Nigeria's Central Bank Again Warns on Crypto Investments

The Central Bank of Nigeria (CBN) has reiterated its warning against cryptocurrency investments.

In a press release issued Wednesday, the CBN warned residents and financial institutions that cryptocurrency investments are unprotected, and investors face risks such as exchange bankruptcy and market volatility.

The release states that dealers in cryptocurrency, such as NairaEx, a Nigeria-based bitcoin trading platform, are "not licensed or regulated by the CBN."

The commentary follows previous messages sent to Nigerian financial institutions in early 2017, in which the CBN advised domestic banks to distance themselves from cryptocurrencies, warning "not to use, hold or transact in any way with the technology."

Despite that, the remarks come at a time when Nigeria has seen growing interest in cryptocurrency investments. According to data from Coindance, weekly trading volume on Localbitcoins in Nigeria surged 500 percent in 2017.

As previously reported by CoinDesk, Nigeria was among the top countries using the "bitcoin" search term, according to Google Trends in 2017, alongside South Africa, Slovenia, Netherlands and Austria.

However, according to a report by Quartz Africa, partially accounting for Nigeria's internet search levels - in addition to controls placed on the country's capital outflow - is a bitcoin-related Ponzi scheme that reportedly resulted in 2 million residents losing a combined $50 million in early 2017.

Nigeria bank notes and bitcoin image via Shutterstock

04.03.2018 / 13:30 67
Russia Eyes Summer Deadline for New Cryptocurrency Laws Russia Eyes Summer Deadline for New
Russia is reportedly hoping to pass long-discussed new cryptocurrency legislation by this summer. Published today, a report from Russia's Parliament
US Regional Banks Begin to Cite Crypto as Business Risk US Regional Banks Begin to Cite Crypto
It's not just America's biggest banks that are worried about cryptocurrency competition, public filings show. WesBanco, according to the latest 10-K
UK Central Bank to Clamp Down on Crypto Money Laundering UK Central Bank to Clamp Down on Crypto
The head of the U.K.'s central bank has said that the institution will step up its efforts to combat the use of cryptocurrencies in illegal financial
ATM Giant Cardtronics Cites Crypto As Business Risk ATM Giant Cardtronics Cites Crypto As
The biggest operator of automated teller machines (ATMs) has joined the growing chorus of financial firms that are warning about the
Ethereum Founder Buterin: ‘Traditional Assets Are Safest Bet’ for Life Savings Ethereum Founder Buterin: ‘Traditional
Editor’s note: The article has been amended to remove previously erroneous reporting of a Twitter scammer purporting to be Vitalik Buterin. We
BOE’s Carney: Time to Hold Cryptocurrencies to Wider Financial System Standards BOE’s Carney: Time to Hold
Bank of England Governor Mark Carney does not support a ban on cryptocurrencies, favoring instead what sounds a lot like patchwork regulation. Carney
Comments (0)
Add a comment
Comment on