Nigeria’s Central Bank Announces Plan to Ban Bitcoin Transactions in the Country

The Central Bank of Nigeria disseminated a memo earlier, expressing their intentions to place a ban on Bitcoin (BTC) and cryptocurrency transactions in the region. In 2017, the Director of Finance and Policy Regulation of the bank, Kevin Amugo, endorsed a document warning against the illicit use of Bitcoin and other cryptocurrencies in money laundering and terrorism financing.

The recent memo issued by the apex bank’s Banking Supervision Department appears to be a follow-through of the earlier warnings. That said, the CBN has now ordered all Non-Bank Financial Institutions (NBFI), Deposit Money Banks (DMB), and Other Financial Institutions (OFI) to promptly shut down all accounts individuals carrying out cryptocurrency transactions or risk severe sanction.

The memo reads that “further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.”

Meanwhile, the ban in Nigeria is coming on the back of a similar proposed bill in India to ban private cryptocurrency use in the region.

The recent announcement came as a rude awakening to the crypto community in the African nation, especially at a time when the US Securities and Exchange Commission (SEC) has promised to set up some regulations, that way it would “not hinder technology or stifle innovation, but create standards that encourage ethical practices that ultimately make for a fair and efficient market.”

Nigeria is reported to be the second-largest Bitcoin P2P market globally, behind the US, indicating that the country was on track to becoming a major cryptocurrency powerhouse.

Key BTC Levels to Watch — February 5

Bitcoin continues to struggle with the $37,827 resistance, despite a booming market sentiment. The cryptocurrency is locked in a pass-and-play momentum between $38,365 and $37,415 over the past few days, with infrequent dips below the range.

That said, BTC has to post a sustained rally above the $37,827 resistance and the $38,365 area or risk dropping below the $36k line in the coming days.

Meanwhile, our key resistance levels are at $37,827, $39,800, and $41,000. While our key support levels are at $36,000, $35,000 and $34,100.

Total Market Capitalization: $1.19 trillion

Bitcoin Market Capitalization: $704 billion

Bitcoin Dominance: 59%

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