Luno, Binance, Others Suspend Naira Deposits Over FG’s Cryptocurrency Ban

Major cryptocurrency companies with massive user base in Nigeria have announced the suspension of naira deposits following the Central Bank of Nigeria’s directive to financial institutions and fintech firms to close all cryptocurremcy related accounts.

Luno, Binance and Bundle are some of the cryptocurrency companies which have made this announcement in separate statements on Friday.

They said they were aware of the circular issued by the Central Bank of Nigeria advising financial institutions in the country to close bank accounts held by cryptocurrency service providers.

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They however assured their customers that withdrawals could be made by those interested but could be delayed.

According to Luno, customers’ funds are safe and will keep updating them on all g developments as soon as they are received.

Luno with headquarters in London with regional hubs in Singapore and Cape Town, said, ““Luno will continue to operate as normal while we seek further clarity from the authorities. Some Nnira deposit methods are currently affected, please check the status page for updates. Withdrawals are unaffected and will continue to be processed, but may take longer than usual. All customer funds are completely safe.

“Luno has always worked closely with regulators in Africa and all regions in which we operate, and will continue to do so. Nigeria’s regulators have taken a pragmatic and forward-looking approach to cryptocurrency in the past and we’re confident that this issue can be resolved quickly, so Nigeria can continue to play a central role in the growth of cryptocurrency”, the statement reads.

Binance, a cryptocurrency exchange that provides a platform for trading various cryptocurrencies, has also suspended Nigerian Naira deposit.

Binance stated, “Please note all your funds on Binance.com remain safe and crypto services on Binance.com will continue as normal. However, our NGN payment partners are suspending deposit services until further notice.

“From 7PM (GMT+1) on Feb 5th 2021, Binance will temporarily suspend NGN deposits through our fiat partner channels. Withdrawal services remain normal and will continue to be processed but might take slightly longer time than usual.

“We apologise for any inconvenience this may cause. We will continue to provide further updates as soon as they become available, and we are working closely with all relevant stakeholders. Binance remains committed to supporting the growth of the blockchain ecosystem in Africa.

Bundle said, “Due to the notice, our naira payment partners have decided to suspend crypto-related payments for now, so we have disabled naira deposits until this is resolved. we’re sorry for any inconvenience this may cause you.”

The CBN, in a circular issued on Friday, February 5, warned and reminded local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.

The apex bank advised the financial institutions to immediately close the accounts of such persons or entities transacting in or operating cryptocurrency exchanges.

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