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Nigerian Crypto and Blockchain Advocacy Group: Freezing or Closure of Bank Accounts Not Supported by Law

News Feed - 2021-11-23 09:11:31

Nigerian Crypto and Blockchain Advocacy Group: Freezing or Closure of Bank Accounts Not Supported by Law


The Blockchain Industry Coordinating Committee of Nigeria (BICCON), has said it is not lawful for Nigerian financial institutions to arbitrarily freeze or close bank accounts belonging to individuals or entities accused of trading cryptocurrency. Affected Crypto Entities Told to Seek Legal Advice


In a public statement issued on November 22, BICCON — a coalition of Nigeria’s foremost cryptocurrency and blockchain advocacy groups — advises affected individuals and companies to seek legal advice and redress in courts where appropriate. The body also insists that no Nigerian organization, public or private, should be above the law.


As previously reported by Bitcoin.com News, Nigerian financial institutions have been closing or freezing bank accounts of entities suspected of trading cryptocurrency since November 3. The institutions have claimed they are doing this in order to comply with the Central Bank of Nigeria (CBN) directive that was initially issued on February 5.


However, despite these claims by banks, the blockchain committee insists it is questionable for the financial institutions to block or freeze accounts simply because the account holders are cryptocurrency traders. BICCON’s statement explains: We consider questionable the actions of deposit money banks (DMBs), nonbank financial institutions (NBFIs), and other financial institutions (OFIs) blocking, closing, and/or freezing the bank accounts of individuals and entities by the mere fact that these individuals and entities are involved in cryptocurrency trading or cryptocurrency-related transactions without more. It is not supported under the current laws of the Federal Republic of Nigeria.


The statement also reiterates BICCON’s stance on a CBN directive that was initially used by financial institutions to justify the exclusion of crypto entities from the banking system.


Only Nigerian Legislature Can Criminalize Crypto Trading


Meanwhile, in the same statement, BICCON also uses the renewed spotlight on the Nigerian cryptocurrency industry to restate its belief that the CBN is encroaching on the law-making powers of the legislature. BICCON states:


“Since 5 February 2021, a number of persons and entities accounts have been closed … Though as the regulator, the CBN has the statutory authority to delimit banking operations, but [the] ordering [of] banks and other financial institutions to freeze [or close] accounts suspected to be in use for cryptocurrency may not be supported by law. This is because there is currently no legislation by the National Assembly criminalizing or illegalizing trade in cryptocurrency in Nigeria.”


The statement insists the failure to review the CBN’s circular “will set a dangerous precedent in the country.” The statement also suggests that while BICCON is against the “undue discrimination” against Nigeria’s blockchain & crypto industry, the body is willing to collaborate with concerned regulators, law enforcement agencies, and the government. Tags in this story account freezing orders, Blockchain, Blockchain Industry Coordinating Committee of Nigeria (BICCON), CBN crypto, Central Bank of Nigeria, Cryptocurrency, cryptocurrency traders, Nigeria crypto


What do you think of BICCON’s public statement? Tell us what you think in the comments section below. IMF Warns El Salvador Against Using Bitcoin as Legal Tender After "Bitcoin City" Announcement REGULATION | 7 hours ago Eurosystem Approves New Oversight Framework Concerning Crypto Services REGULATION | 9 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMoonpay Raises $555 Million in First Funding Round Next articleDvision Network Has Officially Announced the First LAND Sale in Collaboration With Binance NFT and NFTb on 24th November Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItSotheby’s to Bring Down the Hammer in Ethereum on 2 Iconic Banksy Paintings


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