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Since the start of 2018, regulatory bodies from around the globe have been cracking a whip over the legitimacy of cryptocurrency operations in the country. This time joining the club of cryptocurrency regulators in the Nigeria Deposit Insurance Corporation (NDIC) which has issued a warning against the use of digital currencies while noting that the Central Bank of Nigeria (CBN) doesn’t consider them as legitimate currencies.
As reported by local news publication Business Post Nigeria many other government agencies in the country have asked the countrymen to refrain from the use of cryptocurrencies due to the associated risks and extremely volatile nature of the digital currency.
During a March 23rd interview with the News Agency of Nigeria (NAN) at the 29th Enugu International Trade Fair, Adikwu Igoche, an official from the NDIC Research Department, stated that cryptocurrencies are neither financial instruments nor deposits. He added that the Central Bank of Nigeria (CBN) has not authorized them, and therefore, the NDIC does not insure them.
Igoche further stated that “not backed by any physical commodity, such as gold or precious stone, they do not belong in the category of currencies or coins issued by the CNB or the central bank of any other country.”
Igoche also stressed that anyone who is participating in crypto trading will be doing at his/her own risk and the government in no way will be responsible for the same. At the Enugu International Trade Fair, The NDIC has a help desk in order to help those people whose bank accounts have been closed down. The NDIC assists people to get their deposits back as well process their claims.
He said: “The corporation also operates a robust 24 hours national help desk with a toll-free telephone line number 080063424357.The desk is for further information and enquires on depositors’ claim settlement and complaints or sharp practices by their banks.The general public can also access our website on www.ndic.gov.ng.”
Igoche also stated that the NDIC will take every possible step to educate people about the legal, financial, security, and operational risks associated with digital currencies and to help them avoid falling for Ponzi schemes. He urged Nigerians to support only NDIC-insured financial institutions, which they can identify by the official NDIC sticker.
Several major financial institutions around the world have recently issued strong warnings against investing in cryptocurrencies. Moreover, many online and digital tech companies are taking towards banning cryptocurrency advertisements on their platform. Last month in February, TheCoingraph reported that Facebook has put a ban on crypto ads on its platform. Google and Twitter too have hinted at a similar decision in the future.