Union Bank of Nigeria, a major commercial bank, with assets of around US$4.1 billion (NGN 1,381 billion) has issued a warning notice to customers that accounts that can be positively linked with cryptocurrency trading activities will be monitored and might be under restrictive procedures in coming future.
“Dear Customer, The Central Bank of Nigeria (CBN) has advised that cryptocurrency is not a legal tender in Nigeria and has cautioned against transacting in them. In order to guarantee the security of our customers’ funds, Union Bank will monitor accounts being used for cryptocurrency transactions and may impose restrictions including closure of such accounts. We appreciate your patronage and we are committed to providing you with simpler, smarter banking services that best protect your interest and guarantee the security of your funds.
The Bank of Nigeria, the oldest, has been the centre of alot of cryptocurrency disavowals but before this no action has been planned and the premise for the announcements were usually indulge-on-your-own-risk but this is first of its kind announcement.
Nigerian companies have adopted and are currently using cryptocurrencies to facilitate financial sphere. Recently, former-vice president, contender to be the next and opposition leader Atiku Abubakar announced the adoption of blockchain on governmental level if he was voted in.
As reported by local media channels, he was reported saying that ‘In harnessing the potentials of the new economy, we shall promote the production of a comprehensive policy on blockchain technology and cryptocurrencies by the relevant government agencies. The terms of this mandate will ensure that these areas are regulated and managed in a way that provides job opportunities as well as income for the government and people of Nigeria.’
As expected, this financial censorship was met by disapproval from the public. Questions were raised about the bank’s knowledge and understanding of modern technologies and need of their adoption in the structural stream.
