Binance, Quidax, Buycoins Africa, Bundle obey CBN’s crypto ban
Crypto exchanges operating in Nigeria have reacted to CBN’s directive to financial institutions to discontinue dealings with crypto-related transactions.
The leader of the world’s biggest crypto exchange, Changpeng Zhao recently disclosed that Binance was complying with Nigeria’s Apex bank directive and has disabled deposits to prevent more NGN from coming in.
To err on the safe side, we have also disabled deposits to prevent more NGN coming in.
— CZ 🔶 Binance (@cz_binance) February 5, 2021
The highly revered crypto leader updated its clientele base by notifying them via Twitter it received notice from channel partners that NGN deposits and withdrawals will be affected.
What this means: Changpeng Zhao anticipates that the Nigerian banks will stop working with Crypto exchanges in line with the Nigerian Apex bank directive, meaning P2P trading will likely flourish as a result.
- He further advised Nigerian customers to withdraw their local denominated deposits as early as possible to avoid potential channel issues.
That being said, many Crypto pundits are of the opinion that although the Central Bank’s recent directive does not criminalize ownership of crypto, the circular will however make it difficult for them to process debit, credit card, and bank transfer transactions.
It is also interesting to note that most fintech startups like Paystack, Flutterwave, Korapay, usually partner with Deposit Money Banks, Non-Financial Institutions, other financial institutions to transact with Nigerian bank customers.
Also, Nigeria’s fast-growing crypto exchange, Quidax issued a press release on the CBN’s new instructions regarding crypto payments,
“We have seen CBN’s new policy but don’t worry your funds are safe and trading continues as usual. However, all Naira deposits have been temporarily paused as CBN’s policy affects our payment partners.
Thank you for your support,” Quidax stated.
We have seen CBN's new policy but don’t worry your funds are safe and trading continues as usual.
However, all Naira deposits have been temporarily paused as CBN’s policy affects our payments partners.
Thank you for your support.
— Quidax (@QuidaxAfrica) February 5, 2021
In addition, a Nigerian-based crypto exchange, Buycoins Africa has assured its clients via its Twitter handle, disclosing their funds were in good hands thus further assuring the public that the fintech company would ensure its services were compliant.
“Thanks to everyone who has reached out. We are fully aware of the newest CBN circular and are going to be working with regulators to ensure our services are compliant. All trading on our platforms continues as usual, and all user funds are safe,” BuyCoins tweeted.
Thanks to everyone who has reached out. We are fully aware of the newest CBN circular and are going to be working with regulators to ensure our services are compliant. All trading on our platforms continues as usual, and all user funds are safe.
— BuyCoins (@buycoins_africa) February 5, 2021
Furthermore, Bundle, a social payments app that offers crypto support, also disclosed that it was fully aware of the newly issued CBN directive and stated that customers’ funds remained safe as usual.
Here is an excerpt of Bundle Africa’s statement as regards the Nigerian apex bank’s directive recently issued;
“We’re aware of the notice on cryptocurrency-related Naira payments shared by the CBN today.
“Trading has not stopped and your assets remain as safe as ever. We are monitoring the situation closely and we’ll share updates as we have them. Thank you for your support!.”
Our message to all dear Bundlers. pic.twitter.com/L7BUpXL0J7
— Bundle (@BundleAfrica) February 5, 2021
In case you missed it
Recall, the Central Bank of Nigeria had recently notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto and other digital assets.
In a circular dated 5th February 2021 and distributed to regulated financial firms, the apex bank of Africa’s largest economy warned and reminded local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.
- The apex bank instructed the financial institutions to immediately close the accounts of such persons or entities transacting in or operating cryptocurrency exchanges.
- Also, the CBN further warned Nigerian financial stakeholders that any breach of this directive will attract serious regulatory sanctions.
Standard Chartered Bank plans European crypto exchange
Standard Chartered Bank, United Kingdom’s multinational banking and financial services company, plans to launch a cryptocurrency exchange. To achieve this, the bank has partnered with Hong Kong exchange owner, BC Technology Group, to launch a platform for the U.K. and European institutional market.
The bank has long expressed interest in the cryptocurrency market and this is their way of breaking into the space. The project will be handled by Standard Chartered Ventures, the innovation arm of the bank, but no timeline has been given for the launch.
What they are saying
Alex Manson, Head of SC Ventures, in an interview with Reuters, stated, “We have a strong conviction that digital assets are here to stay and will be adopted by the institutional market as a highly relevant asset class.”
Raphael Polansky, the managing director at Boerse Stuttgart Digital Ventures GmbH, mentioned last week that demand for cryptocurrencies from traditional banks will increase over time but in the short run, they may be more reluctant and sceptical especially now that the market has been getting a lot of backlashes from regulatory authorities in various countries.
He stated, “We foresee a lot of strategic moves in the market where traditional banks will invest in crypto custodians instead of building up their own solutions.”
Standard Chartered is now one of the latest mainstream financial players to show interest in cryptocurrency trading. The bank’s longtime rival, HSBC, publicly announced that it had no interest in entering the cryptocurrency market, even as competitors seek to meet institutional and client demand for cryptocurrency-based investments.
What this means
With more traditional banks getting involved in cryptocurrencies, the notion that cryptocurrencies are speculative assets is being dispelled and the value of the crypto market is becoming clearer to investors, especially and with the global inflation rate which is expected to increase.
Standard Chartered share price is trading £505, currently up 0.52%.
Chinese government set to launch Digital Yuan lottery as part of digital currency trial
The Chinese government is set to launch another digital Yuan lottery to help its ongoing digital currency trials, happening in the capital of Beijing. The Beijing Local Financial Supervision and Administration announced yesterday that the government will distribute 40 million digital yuan ($6.2 million) to Beijing residents as part of a test run for the new digital currency.
Starting in June, the program will feature red envelopes, a traditional way of gifting money. Each envelope will have a free wallet containing 200 digital yuan ($31). The red envelopes are intended to be distributed to 200,000 lottery winners. Winners must download an application to use their prizes. The digital yuan can be used at nearly 2,000 designated merchants in the city. To register, consumers can use two banking apps: China’s Mobile Banking App and ICBC Mobile Banking app.
According to the announcement, Beijing residents must apply to participate in the lottery before midnight of June 7, and the winners will be able to spend their prizes by June 20. Users will have the ability to top up their wallets if they want to spend some extra money.
This is not the first giveaway the government has carried out. Multiple digital yuan giveaways were done in other cities such as Shenzhen. The lotteries are intended to help the People’s Bank of China test the country’s digital currency after the central bank launched the first digital Yuan trials in April 2020.
China has reportedly given away as much as 150 million digital Yuan ($23.5 million) to promote digital currency use as part of the trials as of late March. In fact, China’s central bank is looking to allow foreign athletes and visitors to use the digital yuan during the Beijing Winter Olympics in 2022.
To be launched crypto payment gateway FinRik’s native token Wavycoin launches presale
Wavycoin (WVY) the native coin of payment gateway cum exchange FinRik will be launching a presale by May 1 according to insider news, the utility coin boost of an ecosystem that aims at making betting decentralized while also allowing individuals to place bet on the most minimum activity that they find interesting.
Wavycoin will be built on Binance smart chain contract and the total supply of the token is 100million and its expected to debit at presale at $0.5.