Union Bank of Nigeria PLC plans to restrict and ban accounts associated with Cryptocurrency. This was made known through a general notice of the firm on the 27th of November.
Union Bank of Nigeria PLC’s Notice On Crypto Account Restriction
Union Bank of Nigeria PLC rated as the sixth largest in Nigeria by asset, ranked as Africa’s 14th largest bank as well as the world’s 556th largest bank has issued a general notice to the customers of its intention to restrict accounts associated with Cryptocurrency. The bank which is over 100 years old was initially Barclays bank before it was nationalized in 1979.
The general notice addressing its customers stated that according to the advice of the central bank of Nigeria that Cryptocurrency is not a legal tender in the country and having cautioned against the usage and an attempt to guarantee the safety of its customers, the bank is to monitor account associated with Cryptocurrency. It was stated that this might include restriction such as the closure of such bank account, while it also appreciates the patronage of its customers as well as its commitment to safeguarding the interests of its customers.
Meanwhile, the recent general notice of the bank is coming at a time when a presidential candidate, Atiku Abubakar, a candidate of PDP, People’s Democratic Party of the 2019 general election in Nigeria has pledged towards introducing a regulatory framework for Cryptocurrency in the country. This was noted in his campaign policy document.
Crypto Use In Nigeria and The Public Reaction To The Notice
Though Nigeria has no Crypto regulation and the central bank of Nigeria had stated that it is not a legal tender for a transaction, Crypto use in the country has continued to see growth as many tech firms, and individuals are fond of it.
The notice of the union bank of Nigeria is based on the opinion of the central bank. Despite the stance of the apex bank in the country, it is yet to create a negative law against the use of digital currencies in the country. This was affirmed by customers reacting to the notice of the bank that “Like seriously? I have been in several meetings where CBN has always been present. They have never asked individuals not to trade crypto. Only you banks were told not to trade with our money in your bank. Time for many believers to ditch you.”
Also, another user of the bank stated that “Unionbank_Ng just lost me as a customer. I don’t have time to be begging anyone for my own hard earned money.”