Blurttradinghub Academy | Cryptocurrency ban in Nigeria

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Last year the Central Bank of Nigeria issued a directive that Nigerian banks must de-list all forms of online platforms that facilitate the trade of cryptocurrencies. According to the CBN, there is no regulatory framework for the cryptocurrency.

The same year Nigerian lawmakers adopted a motion seeking to ban or restrict the activities of digital currency. In 2016, Nigeria reportedly became the world's biggest user of bitcoin.

"In line with extant laws and regulation and in order to enhance the fight against money laundering and terrorism financing, the Central Bank of Nigeria has placed a moratorium on the issuance of newvirtual currency as a means of payment," the CBN said in a statement. "In order to achieve compliance with all these, the bank said it would take all necessary regulatory actions, including engagement with stakeholders to de-list any platforms that do not comply."

But Nigerians are not convinced. On Twitter, people are trying to find ways around the policy, including exchanging "virtual" for "real" dollars, or Bitcoin for real dollars.

"As long as it does not negatively impact the federal budget,we are allowed to use bitcoins like real currency for all government transactions," one Twitter user wrote. "They should simply leave us alone and let us decide for ourselves how to spend our money," another said.

A few Nigerians are actually finding creative ways around the ban. Some people are using the popular messaging app like Telegram, WhatsApp to trade in cryptocurrencies like bitcoin. Telegram and WhatsApp is an encrypted communication service that allows users to send messages to other users on the app, but with end-to-end encryption.