That's after City regulator the Financial Conduct Authority (FCA) announced new rules in an effort to stop honest Brits being ripped off by those taking advantage of how few people understand this new breed of "cryptocurrencies".
The FCA's Sheldon Mills told Mirror.Co.UK: "This ban reflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.
"Significant price volatility, combined with the inherent difficulties of valuing crypto assets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives.
"We have evidence of this happening on a significant scale. The ban provides an appropriate level of protection."
The FCA's Sheldon Mills told Mirror.Co.UK: "This ban reflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.
"Significant price volatility, combined with the inherent difficulties of valuing crypto assets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives.
"We have evidence of this happening on a significant scale. The ban provides an appropriate level of protection."
Wahala be like bitcoin o.
ReplyDeleteYou know why they are doing this..They can see that cyptocurrency will rapidly replace fiat money..Most countries CBN are in control and want to ensure adequate money supply (monetary policies and fiscal policies)..However cyptocurrency is not as hidden as people claim it is and no be today people will use anything to do dubious activities...Money does that to fund terrorist activities or illegal ammunition purchase, why has money not been banned..The thing is Cyptocurrency has come stay and people will find their way...Fiat money will very soon have no value..As mama bedbug dey talk, anything wey hot must cold..I see cyptocurrency been backed by gold its gonna happen, I believe so..
DeleteThis was since last month please check the date
ReplyDeleteToo many fraudsters trading with Bitcoin. The government aren't happy that they can't control the flow of money because of the nature of cryptocurrency
ReplyDeleteWhere are those insulting Godwin Emefiele and the president. People always allow their emotions to overwhelm them. A group of criminals hacked the customer data of a bank in our country, they insisted the negotiation must be in bitcoins. You guys expect CBN not to move against crptocurrencies after that nonsense. Nigeria is trading $200-$300 million dollars every week, and our nation is second biggest crpto trading market after United States, beating economic giants like Germany, France, Canada and UK. Where is the money coming from, if not from crime and money laundering. A Nigerian living in the US registered a company to defraud the covid stimulus paid to companies. He got $500,000 dollars and sent the money to Nigeria through crpto. In the third quarter of last year Nigerians living abroad sent $2 billion dollars home through crypto, starving CBN of the needed dollars, CBN was not happy about this. Foreign direct investments was now coming into the country through crptocurrencies, again starving CBN of the needed dollars. The anonymity surrounding the crpto market makes it difficult to trace the funds. Nigeria do not have the technology to monitor the crpto market,
DeleteThanks Alexander, my family is negatively affected because of this shit till today, imagine having money in the bank not knowing your money have been diverted to an unknown source and the account compromised, abeg let the government do whatever it takes to stop the fraud in the name of crypto whatever.
DeleteThe banks also should carry out their due diligence when employing staff, there are alot of criminals parading themselves as bank officials lately.
Alex.,. oil dey your head jare
DeleteAlexander 👍👍👍
DeleteFraudulent activities has been happening long before cryptocurrencies. You don't have to associate every criminal offences to Bitcoin just because CNN is losing out on people borrowing money to repay with higher interest. Cryptocurrencies trading has helped many to be financially independent. There'll be a lot more armed robbers and petty thiefs because of this legislation in Nigeria.
DeleteInstead of banning, while cant government monitor the companies trading in cryptocurrencies by AML/KYC through users NIN and BVN?
That's my thought
Unknown thanks for putting things in the right perspective.
DeleteAnne K, it's not bank staff that are criminals but some gullible bank customers divulge person information about their bank accounts to scammers.
Alexander, valid points but you should know there are better ways to earn foreign exchange by a country with a better apex bank regulating the activities of other banks and financial institutions. What's Nigeria's GDP? Why are industries, manufacturing companies, agro-allued business not thriving - producing standardized goods and products for exports?
Banks are busy chasing billions of deposits without a commensurate funding of risk assets/loans for manufacturing, agricultural and export sectors.
FG and CBN only pay lip service to this sectors. No consistent policies but cronyism and nepotism rule and ruin the economy.
The country relies heavily on foreign exchange earnings from crude oil, exports raw materials at cheap prices instead of finished products.
Why would a company like Erisco Foods Ltd move their manufacturing plants to other African countries? Jobs opportunities gone, export earnings gone.
You know why? Policy inconsitencies.
CRYPOCURRENCY is not the problem or reason for fraud because eventually ONE WORLD GOVERNMENT will usher in ONE WORLD CURRENCY. You can be sure it won't be fiat money but digital currency.
Some human beings are already being "microchipped" for the days ahead. How are they going to regulate that?
FG and CBN only pay lip service to *these* sectors. (pardon the typo)
DeleteNa awon wire wire cause this one.........o
ReplyDeleteSee why we need to make money fast, no government will want to see its citizens swimming in money. Meanwhile BNB is giving me joy.
ReplyDeleteEyaa. This will really affect some people. It is well.
ReplyDeleteWow, UK too?
ReplyDeleteIt's high time, though I feel for some people, but this crypto whatever has been used in disguise to commit fraud, moving money from unsuspecting accounts.
ReplyDeleteI am still yet to understand this cryptocurrency. After MMM, every online thing was paused by me. Thank you
ReplyDeleteThe crypto l just started trading on... please they should not try it with me oo
ReplyDeleteThe crypto l just started trading on... please they should not try it with me oo
ReplyDeleteIn my mind, i think this crypto thing is that 666 money that was mentioned about end time, antichrist, etc
ReplyDeleteThey banned derivatives not spot trading.
ReplyDeleteI learnt the hard way with mmm. I don’t do any online business again o. I can’t be investing for another person to reap. God forbid. All this doubling one naira to millions is always too risky.
ReplyDelete