Union Bank of Nigeria warns to shut down accounts used for crypto transactions

29 Nov, 2018 | Updated: 29 Nov, 2018
by Fifi Arisandi
Union Bank of Nigeria warns to shut down accounts used for crypto transactions

Union Bank of Nigeria sends announcement to their customers threatening to close down the accounts used for crypto transactions. 

A commercial bank in Nigeria just released an announcement that warned their customers who perform crypto transactions using their accounts.

On the announcement, the Union Bank of Nigeria (UBN) stated, “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.”

The bank is reported to have released multiple warnings to their account holders related to the crypto-related transactions. And according to Munachi Ogueke, the co-founder of OTC Bitcoin trading platform, Cryset LLC, many of crypto investors in the country have closed down and emptied their accounts on UBN following the warning announcement.

Interestingly, while UBN cited “a string of cautionary statements” related to crypto from the Nigeria central bank (CBN) in the announcement, the CBN itself hasn’t released any bans to any transactions related to cryptocurrency, despite its unfriendly stance towards it.

Ogueke said that UBN’s move can be related to the “carte blanche” given to all commercial banks in the country by the central bank to perform any necessary actions that are compliant with the anti-money laundering regulations, as reported by Coinwire.

UBN stated that their decision to monitor accounts doesn't mean the respective accounts are related breaking the regulations, but more to being cautious in protecting their customers' funds, on which Ogueke commented the statement as "flimsy".

Despite being the country with the biggest crypto industry in Africa, Nigeria is still lacking clear regulations towards cryptocurrency.

The financial institutions in the country seem to show a cautious approach to the industry, despite its potential to lift the country’s economy to a better state.

Will Nigeria become more open to cryptocurrency in the near future? Stay here on Chepicap for more updates. 

Read more: 

Nigerian pro-crypto presidential candidate promises regulations

Nigerian blockchain firms demands crypto guideline from central bank

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