•Christine Lagarde: Bitcoin facilitates questionable transactions

•Nigeria surged to second highest crypto destination in the world raking $200 to $300million a week without underlining economic activity, alarming the CBN

•FG alarmed kidnappers had switched to bitcoin for ransom payments

Tobi Soniyi in Lagos and Chuks Okocha

More facts have emerged on why the Central Bank of Nigeria (CBN) decided to ban cryptocurrency trading in the country.

The apex bank prohibited dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges last week Friday.

Investigations by THISDAY have revealed that, the federal government and the CBN were warned by the United States’ Federal Bureau of Investigation, (FBI), on the activities of fraudsters using cryptocurrencies to bringing into the country hundreds of millions of US Dollars illegally obtained from the USA and other Western economies.

This was said to have particularly targeted COVID-19 stimulus packages designed to cushion the impact of lockdown measures on businesses and working families in these countries.

In an interview at a Reuters online event last week Wednesday, President of the European Central Bank, Christine Lagarde said of bitcoin: “It’s a highly speculative asset that has led to some reprehensible activity, including money laundering, and any loopholes need to be closed.

“There has to be regulation. This has to be applied and agreed upon at a global level because if there is an escape that escape will be used; she said.

According to THISDAY investigation, “FBI had discovered that fraudulent Nigerians, popularly known as yahoo boys, took control of large chunks of money released as stimulus in the wake of the devastating effects of the COVID-19, which has put many Americans out of jobs.”

In order to avoid detection, these fraudsters had been sending millions of dollars to Nigeria through cryptocurrencies. This made it difficult for the authorities in both Nigeria and the US to trace the illicit monies.

However, before these funds were used to destabilise the Nigerian economy, the CBN had to wield the big stick.

In the last six months, Nigeria is said to have become the second country in the world with the biggest cryptocurrency transactions.

According to highly placed sources within the presidency, “These fraudsters remitted between $200 and $300 million to Nigeria every week, using cryptocurrencies.

“The Central Bank and the federal government were clearly alarmed by this development and had to act fast before irreparable damage is done to the economy.” Even more disturbing was that intelligence reports indicated that kidnappers had switched to bitcoin for ransom payments, making it increasingly difficult to trace.

To make matters worse, investigations by FBI showed Nigeria did not have the underlining economic base to justify the massive flow of funds on a weekly basis. To compound the issue, was how the inflows were being routed leaving investigators puzzled and perplexed by the elaborated complicated channels in the digital money world of anonymity.

After the FBI tip-off that these funds being pumped into cryptocurrencies were products of fraud, the federal government, acting through the CBN, had to ban cryptocurrencies in Nigeria.

A cryptocurrency (or crypto) is a digital unregulated currency that could be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions.

Much of the interest in the currency, not backed by any government, is to trade for profit, with speculators at times driving prices skyward.

But the CBN had, at the weekend, directed banks and other financial institutions to immediately close any accounts dealing in cryptocurrency or facilitating payment for cryptocurrency exchange, with immediate effect.

The banking regulatory authorities directed banks to expose any individual and entity running such accounts, warning that failure to adhere to the directives would attract strict sanctions.

The apex bank, in its circular on the issue, cautioned deposit money banks, (DMBs) non-bank financial institutions (NBFIs) and other financial institutions (OFIs) as well as members of the public on the risk associated with transactions in cryptocurrency.

The Director of Banking Supervision, Bello Hassan, and the Director of Payments System Management Department, Musa Jimoh, signed the circular.

“Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.

“Please note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect,” it stated.

However, the CBN directive had immediately drawn heavy criticisms from the Nigerian public, with a former Vice President, Alhaji Atiku Abubakar, advising the apex bank to reverse the decision, arguing that the country couldn’t close her economy at this time

In a statement personally signed, Atiku said the number one challenge facing Nigeria was youth unemployment, explaining that it was not just a challenge, but also an emergency, because it affected the economy, and exacerbating insecurity in the nation.

Speaking against the backdrop of the decision of the CBN to ban and restrict banks transactions in the cryptocurrencies, Atiku said, “What Nigeria needs now, perhaps more than ever, are jobs and an opening up of our economy especially, after today’s report by the National Bureau of Statistics indicated that foreign capital inflow into Nigeria is at a four year low, having plummeted from $23.9 billion in 2019, to just $9.68 billion in 2020.”

He said already, the nation had suffered severe economic losses from the border closure, and the effects of the #COVID19 pandemic.

Accordingly, he explained, “This is definitely the wrong time to introduce policies that will restrict the inflow of capital into Nigeria, and I urge that the policy to prohibit the dealing and transaction of cryptocurrencies be revisited.

“It is possible to regulate the sub-sector and prevent any abuse that may be inimical to national security. That may be a better option, than an outright shutdown.

“There is already immense economic pressure on our youths. It must be the job of the government, therefore, to reduce that pressure, rather than adding to it.

“We must create jobs in Nigeria. We must expand the economy. We must remove every impediment towards investments. We owe the Nigerian people that much,” Atiku stated.

https://www.thisdaylive.com/index.php/2021/02/07/how-fbi-warned-fg-cbn-on-scammers-using-cryptocurrencies-to-defraud-the-west/

FBI might mean many different things.

Fulani
Brothers
Information

So because of activities of Yahoo boys and kidnappers the world Bank told the CBN to ban crypto currency and like a fool too the CBN agreed

If not that the Nigerian government is foolish aren't they suppose to weigh the pros and cons before enforcing the directive.

What can't dey ask the same United States why they haven't banned crypto currency in their own country

Ok

The ban on cryptocurrency is targeted at fraudsters based here. the cybercrimes and atrocities committed by these unfortunate set of people have affected hard working and sincere individuals.

The day I fear cryptocurrency was the day some kidnappers requested for ransom through "Bitcoin"

Hmm

Let's hope they mete out equal justice to this man's country too.

https://www.google.com/amp/s/www.coindesk.com/serbian-man-extradited-to-us-after-being-indicted-in-70-million-crypto-fraud%3famp=1

Shame on all the ones making things harder for the honest and hard working ones.

All these kidnappers and fraudsters, God should help us real hustlers.

So you mean Nigeria had to be ban something that brings the country 200 - 300m every week because Nigeria has no economic underlining basis for having such money in cryptocurrency?

This is how oyibo help us to destroy our country by deceiving and enforcing stoopid policies on us.

This doesn’t even make sense and I know it’s a cover up story by the government

Western countries earn 20 to 40 percent of every drop of oil in Nigeria through international Oil companies


.

Truth be told, cryptocurrency, with its "anonymity', have given several unscrupulous scamming elements the propensity to scam unabated and without fear.

Having an unregulated and largely anonymous global currency might sound cool, but when you think of all the harm that 10% of the world population can and will do with it, it would greatly outnumber the benefits for the other 90%.

I know yahoo boys that have made a killing through scamming people, getting the funds converted into crypto and using one of the multiple exchanges here to withdraw their funds. A regular banking system would leave a paper trail that's easy to follow. Blockchain can be traced, but it's a very complex process that can be made even harder for those that can get around it.

We know some people are genuine crypto traders and have positive use for crypto. But the fear is, in a country like Nigeria, scammers will do the worst with it.

The government should rightfully be worried that millions of dollars that they cannot regulate, trace or control, is being syphoned in and out of this country via cryptocurrency.


Point of correction, cryptocurrency wasn't banned. The government cannot ban cryptocurrency because it's a digital currency. The government has only told exchanges that we cannot continue to allow you to exchange and covert naira to a digital coin that we have no direct control over.

It's a controversial decision, but given that politicians can launder money with it in seconds, yahoo boys can dupe with it in minutes and kidnappers can demand untraceable ransoms, you'll see why this extreme step may have been taken.

If your first response to this is afterall the politicians are already stealing, then you should seriously question your education. If one man gets away with murder, must we then use the excuse to pardon all murderers?

lol

G

PayPal blocked
Western union, Tight
Bitcoin transaction, blocked


They will always find another way

FBI had discovered that fraudulent Nigerians, popularly known as yahoo boys, took control of large chunks of money released as stimulus in the wake of the devastating effects of the COVID-19, which has put many Americans out of jobs.”

In order to avoid detection, these fraudsters had been sending millions of dollars to Nigeria through cryptocurrencies. This made it difficult for the authorities in both Nigeria and the US to trace the illicit monies.

For all those fraudsters giving Nigeria a bad name in and out of the country.
All the corrupt money you make thinking you are enjoying life and making others cry and commit suicide will be your downfall in life.
Y'all will never have the peace and long life to enjoy your blood money.
You keep making things difficult for the genuine, honest and hardworking Nigerians like us out there.
Your fraudulent lifestyle has caused a lot of genuine business people untold hardship.
You will all end miserably in life if you don't desist from your criminality.
Bastards.

After the FBI tip-off that these funds being pumped into cryptocurrencies were products of fraud, the federal government, acting through the CBN, had to ban cryptocurrencies in Nigeria.

And some lazy illiterates that politics and hatred for Nigeria has eaten into their empty brain were all wailing online that it is because of their illiterate uncle,
Sunday igbo whatever that the CBN stopped crypto for now.
Annoying lazy tins on cyberspace, they will never use the remaining small part of their almost empty brain to think logically for once.

joey150:
I know yahoo boys that have made a killing through scamming people, getting the funds converted into crypto and using one of the multiple exchanges here to withdraw their funds.
A regular banking system would leave a paper trail that's easy to follow. Blockchain can be traced, but it's a very complex process that can be made even harder for those that can get around it.

We know some people are genuine crypto traders and have positive use for crypto. But the fear is, in a country like Nigeria, scammers will do the worst with it.

The government should rightfully be worried that millions of dollars that they cannot regulate, trace or control, is being syphoned in and out of this country via cryptocurrency.


Point of correction, cryptocurrency wasn't banned. The government cannot ban cryptocurrency because it's a digital currency. The government has only told exchanges that we cannot continue to allow you to exchange and covert naira to a digital coin that we have no direct control over.

It's a controversial decision, but given that politicians can launder money with it in seconds, yahoo boys can dupe with it in minutes and kidnappers can demand untraceable ransoms, you'll see why this extreme step may have been taken.

If your first response to this is afterall the politicians are already stealing, then you should seriously question your education. If one man gets away with murder, must we then use the excuse to pardon all murderers?

It is always good and refreshing to see we still have reasonable and sensible members like you on this forum.
Though you guys are few, we still appreciate your truthful contributions.
With people like you, the future of our country is secured.
Stay blessed.

Before Cryptocurrencies, what were the scammers using? Why didn't they ban those mediums too?

This is a very lame excuse. Scammers get paid in legal money (fiat), why haven't we banned the use of money? Rubbish.

Not Fulani Militants or Boko Haram terrorists...nor criminal political office holders, or generals with questionable savings accounts with heavenly compound interests.

Of all the warning, nah crypto una move like bullet...it is well.

[img]https://media1./images/8e37a33c823145f9cbccc2c92ba820ae/tenor.gif[/img]

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b3llo:
The ban on cryptocurrency is targeted at fraudsters based here. the cybercrimes and atrocities committed by these unfortunate set of people have affected hard working and sincere individuals.

The day I fear cryptocurrency was the day some kidnappers requested for ransom through "Bitcoin"

May they all rot in prison....
Thieves and criminals giving the nation a bad name.
Na d reason some criminals here no like dem MANNA be dis, and you see those fools hiding under politics and our love for our darling nation to type jargons.
Foolish criminals.

Excerpts......

Aflix:
You this wannabe, you had better stop this nonsense you are doing. It doesn't fit you.

So the owner of the moniker is not dem [/b] again, it is now [b] wannabe?
You wailers and enemies of this nation are just so confused sha.

You have tagged over 127 people on Nairaland to be the same people as us.
Anybody that types GOD BLESS NIGERIA is now dem [/b].
Anybody that pray for our darling nation must be one of them at [b].
Anybody that types any positive thing about Nigeria must be from [/b].
Anybody that says no to [b]FRAUD AND FRAUDSTERS is a member of dem MANNA crew.
Anybody that says NO TO DRUGS must be from [/b].
Anybody that preaches about [b]JESUS CHRIST, is a Pastor from MANNA.
We can't count how many times, some dumb people said in derogatory ways,
that [/b] is the same person as [b]Righteousness89, only because he talks about JESUS CHRIST the same way we have been doing for many years here, ( the person has replied them many times, we guess he is tired of doing that now!)

Well in all these, people can now understand the kind of people that don't like dem MANNA, it shows those kinda people are criminals, fraudsters, losers, psychiatric patients, miserable souls, enemies of Nigeria and never do well in life.
600 years of what they wish for Nigeria go back to them in 600 folds...( 600 times 600 ...go do the math, losers!)

Dear SilverNorGold,
the Bible says we should imitators of good things,
Keep up the good work brotherly.
God bless you and all sane and honest Nigerians/Nairalanders.

SilverNorGold:

God bless you and other patriots for your love and sacrifice for this great nation.

Enemies can only bark, they can't bite..

A wise man said, if you keep throwing stones at every dog that barks at you, you'll not get to your destination. So let them wail, let them bark.. We'll not relent until project Nigeria, the Nigeria of our dreams; the Nigeria that will put first world countries to shame; a prosperous Nigeria is achieved...

God bless all our Patriots.
God bless the Federal Republic of Nigeria.

Amen.
God bless you and yours.....always.

We Rise!

DWJOBScom:

The crooks will always look for ways to support the dirts that discredit our nation Nigeria.
Horrible boys bringing sorrow to families, separating and destroying homes via scam. It shall never be well with everyone of them.

Amen in Jesus name.
Insha Allah.
God bless you too.

enuelsmith:

Very sensible man spotted.... Only fools apeak against the Government for this actions

You are a wise man also.
It is because those criminals have been used to corruption for the major part of their fraudulent lives.
That is why they keep wailing 24/7.
Good we still have honest people like you on this forum.
Keep it up Emmanuel.

Rubbish government should focus on building roads and giving us 247 light

Okay...

Puh-lease.

The west defrauds the whole of Africa every day.

speechless

This is a post from another thread

sailor1:
What really gets on my nerves with this CBN decision is the propensity for African countries to keep making wrong decisions.

Anyone trading crypt0 knows this ban does nothing. It'd even make it easier for fraudulent folks to escape the law.

Even if some folks were using it for fraudulent means, stopping or placing a ban on it wouldn't help in any way. Internet fraudsters had existed in Nigeria before the first bitc0in was mined. Politicians have been ripping our treasury off even before crypt0 came into existence.

Let's compare what the CBN did to what Western countries have done with crypt0.

1. They mandate crypt0 exchanges to keep very clear KYI data on all their customers so as to be able to identify transactions.

2. People are mandated to pay tax on profits you make on trading. You can submit your trading details. Eitherway, some exchanges will submit all details of those who traded significant volumes to the tax office to peruse. I have attached the guidance from U.S and UK tax agencies
https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies
https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals

3. Certain banks in the West allow people to buy crypt0 from their banking app with the click of a finger. Paypal recently started allowin their U.S customers buy crypt0 in app.

4. Some countries mandate users to keep details of where they withdraw crypt0 to.

Now these same countries ask our CBN to ban crypt0 and they follow? Would the U.S or U.K cut such huge amount of cash inflow from any country?.
If the FBI is worried about fraud through crypt0, then they should ban it in the US.
But then, U.S companies have slowly started buying up bitc0in in large amounts. Today, China controls the mining and the West the exchanges, tomorrow when Africans are left out, we'd say bitc0in and crypt0 was created to make africans poor. SMH

b3llo:
The ban on cryptocurrency is targeted at fraudsters based here. the cybercrimes and atrocities committed by these unfortunate set of people have affected hard working and sincere individuals.

The day I fear cryptocurrency was the day some kidnappers requested for ransom through "Bitcoin"

Even if zero fraud happens in Nigeria Racist won't still like you, quite serving slavishly white

Russia, US , Korea , China have more internet fruadsters per capita yet they never killed crypto market to kill their citizens right to benefit from opportunity online



.

Wetin Fela no go see for shrine...

Long over due....

Anybody not supporting the ban is a criminal.

What is the underlying commodity are you trading on?

Lol

b3llo:
The ban on cryptocurrency is targeted at fraudsters based here. the cybercrimes and atrocities committed by these unfortunate set of people have affected hard working and sincere individuals.

The day I fear cryptocurrency was the day some kidnappers requested for ransom through "Bitcoin"

Let's even agree that so people are using cryptocurrency to aid their criminal activities does that mean the government should now ban it simply because of the criminal elements

It's just like saying the government should ban social media/ Internet simply because people are using it to do online scam, watching porn and insulting the president.