Union Bank of Nigeria Threatens To Shut Down Cryptocurrency-Related Accounts

Union Bank of Nigeria Threatens To Shut Down Cryptocurrency-Related Accounts

Cryptocurrency News
November 29, 2018 by Jane
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The Union Bank of Nigeria has reportedly cautioned customers against transactions in cryptocurrencies, as the bank threatens to close down accounts used for crypto transactions. The Union Bank of Nigeria said that effective immediately they would be monitoring accounts which are involved in trading digital currency intending to shutting them down without explanation. This is, according
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The Union Bank of Nigeria has reportedly cautioned customers against transactions in cryptocurrencies, as the bank threatens to close down accounts used for crypto transactions.

The Union Bank of Nigeria said that effective immediately they would be monitoring accounts which are involved in trading digital currency intending to shutting them down without explanation.

This is, according to the bank in keeping with the various warnings issued by the Central Bank of Nigeria, in the past.

Nairaland, the largest Nigerian online community with over 55 million Internet users, has published a letter reportedly from the Union Bank, which cited the Central Bank of Nigeria “advising that cryptocurrency is not a legal tender in Nigeria and has cautioned against transacting in them.”

This announcement has however caused an outrage amongst the cryptocurrency and blockchain enthusiasts, who have taken to Twitter and other forms of social media to vent their doubts about the integrity and financial literacy of the country’s banking sector.

Union Bank’s sudden decision to monitor accounts has shaken the west African country’s digital asset industry, as many crypto investors have already started taking their money out from their UBN accounts in order to avoid the possibility of having their withdrawal rights terminated or suspended in the near future.

In regards to this matter, Munachi Ogueke, co-founder of Cryset LLC, said that a whole host of individuals have been warned by the central government that their bank accounts could be possibly shut down in the near future. As a result of this, Ogueke said that “many people are emptying their accounts and closing them down as we speak”

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”.

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