Nigeria’s Union Bank Warns Its Customers Against Crypto Transactions, Threaten To Shut Such Accounts

One of Nigeria’s leading financial institution, Union Bank has warned its customers against crypto-related transactions.

The bank which is also threatening to shut down an undisclosed number of cryptocurrency-related accounts without explanation.

This was contained in a circular published on November 26, and sent to its customers. According to the bank, since cryptocurrency is not a legal tender in Nigeria, it would place restriction on account used for such transactions or close them outrightly in-line with the Central Bank of Nigeria’s (CBN) past warnings about cryptocurrency trading.

“In order to guarantee the security of our customers’ funds, Union Bank will monitor accounts being used for cryptocurrency transactions and may impose restrictions including closure of such accounts,” the statement reads in part.

Sample of Letter from Union Bank

However, with the recent development, many cryto investors are reportedly said to have started emptying their accounts and closing them down, out of fear they might lose their investment.

 

However, Munachi Ogueke, co-founder of Cryset LLC — a Lagos-based over-the-counter bitcoin trading platform — told news.Bitcoin.com that several people within the Nigeria cryptocurrency space had received notifications of possible account closures from Union Bank. “Many are emptying their accounts and closing them down,” Ogueke said.

Munachi Ogueke

With only a few Nigerians embracing cryptocurrency at the moment, it is however not known if more banks would go the way of Union Bank, as apprehension still fills the air about this. However, should it happen, then the crypto industry in Nigeria may come under serious threat or even collapse.

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