The struggle by the Nigerian government to prevent the citizens from trading Crypto currency has not yielded the desired results. Many Nigerians have resorted to Decentralized platforms for Crypto currency trading. Nigerians are yet to fully embrace the new alternative to Crypto currency provided by the government as 'eNaira'. The high rate of unemployment in Nigeria has led the youths to continue with the Crypto currency business. It is obvious that the only way to curb Crypto currency trading is to provide job alternative to the jobless youths and citizens.
Ban on Crypto currency Trading in Nigeria
Earlier this year, on February 5th 2021, the CBN released an official statement that ordered all financial institutions to stop facilitating crypto transactions and desist from transacting with entities engaging in crypto. The statement also instructed all banks and financial institutions to close accounts of individuals or entities engaging in this type of transaction.
The CBN warned in the letter that breaches of the directive will attract severe regulatory sanctions.
This letter has afterwards sparked a lot of reactions and caused a lot of confusion amongst the people as to whether they can still deal legally in their Crypto business in Nigeria and engage in crypto transactions. This prompted interviews with top officials of the CBN including the Central Bank Governor Godwin Emefiela and they explained that the CBN release is not to discourage people from trading crypto but it shouldnt be linked to the banking sector. The Nigerian banks afterwards were ordered to freeze some perceived accounts linked with Crypto currency trading.
Court Defends and Unfreezes accounts banned due to links with Crypto currency.
Recall earlier that in the month of October, the Nigerian Court had requested an unfreezing of Accounts Blocked For Cryptocurrency Trading In Big Win For Traders. The followed the federal High Court sitting in Abuja on Monday 25th October which vacated an interim order which directed the Central Bank of Nigeria (CBN) to freeze accounts of two firms in two banks that were linked to cryptocurrency trading. This is in accordance with the law that any conduct that must be sanctioned must be expressly stated in a written law.
Nigerians resorts to Crypto currency trading due to the increasing rate of unemployment.
Obviously, Nigeria ranks among those countries with highest rates of unemployment. Give the lack of available meaningful jobs for Nigerians, the later have embraced cryptocurrency trading as a means of survival and daily income. Despite the ban by the government on Crypto currency trading, Nigeria has always ranked globally the number one highest Crypto currency trading. It is obvious that the only way to detract the citizens from this trading is to provide good jobs for the youths who loom about the streets in idleness in search of jobs.