|Nov 29, 2018 10:50 PM||By: John Patrick Mullin | 3291 Views|
Union Bank of Nigeria sends advice to their customers threatening to close down the records used for crypto transactions.
A commercial bank in Nigeria just published a report that warned their customers who make crypto transactions managing their accounts.
On the announcement, the Union Bank of Nigeria (UBN) said, “To guarantee the safety of our customers’ funds, Union Bank will monitor accounts being used for cryptocurrency transactions and may require limitations including the conclusion of such statements.”
The bank is stated to have released multiple information to their account holders associated to the crypto-related transactions. And according to Munachi Ogueke, the co-founder of OTC Bitcoin trading platform, Cryset LLC, many of crypto investors in the country have closed down and released their accounts on UBN following the warning announcement.
Interestingly, while UBN called “a string of cautionary statements” reported to crypto from the Nigeria central bank (CBN) in the report, the CBN itself hasn’t issued any bans to any transactions related to cryptocurrency, notwithstanding its unfriendly stance towards it.
Ogueke stated that UBN’s move could be compared to the “carte blanche” given to all commercial banks in the country by the central bank to perform any required actions that are submissive with the anti-money laundering laws, as stated by Coinwire.
UBN said that their arrangement to monitor accounts doesn't mean the respective articles are related breaking the regulations, but more to being careful in preserving their customers' funds, on which Ogueke said the report as "flimsy."
Despite being the country with the largest crypto industry in Africa, Nigeria still lacks clear guidance towards cryptocurrency.
The financial institutions in the nation seem to show a cautious approach to the industry, notwithstanding its potential to lift the country’s market to a better state.