Union Bank of Nigeria threatens to shut down Crypto-currency Related Acounts

Union Bank of Nigeria with Headquarters in Lagos threatens to close cryptocurrency accounts.

A large Bank in Nigeria, Union Bank has threatened to shut down a good number of accounts with out explanation. Union bank, a Lagos State Bank claims that any decision to be taken is based on the Central Bank of Nigeria past warnings about Crypto-currency trading.

In a statement to account holders this week, UBN warned: " In order to guarantee the security of our customer's funds, Union Bank will monitor accounts being used for Cryptocurrency transactions and may impose restrictions including closure of such accounts.

Earlier this last year 2017, the Central Bank of Nigeria released a comunique to financial institutions asking them not to use or trade virtual currencies pending. This year Feb. 2018 the same warning was repeated adding that "virtual currencies are not legal tender in Nigeria"... We wish to caution all and sundry on the risks inherent in such activities.


However the Union Bank's sudden decision has shaken the west African country's digital assets industry. Nigeria is a leader nation in Africa when it comes to crypto-currency. Investors are making withdrawals to avoid the possibility of frozen accounts. Withdrawals mean a drop since the value of the virtual currency keep dropping.

A lagos Based over-the-counter trading platform representative told Nshingadshub that people within Nigeria into crypto had received notifications of account closures from Union Bank. "Many have empty their accounts and closing them down" M. Ogueke.

The motive of Union Bank is complicated with these crypto-currency-linked accounts. It is even more unclear in light of CBN's warnings as either of them said that cryptocurrency transactions were illegal. M. Ogueke sugested that commercial Banks may have been ordered by the Central Bank of Nigeria to close customer accounts without explanation. Note that their accounts are in accordance with MONEY laundering rules.

Union Bank has said that its decision to monitor accounts does not mean it suspects that some customers are violating anti-money laundering laws. Rather, it says becoming more vigilant to protect clients funds, describing its justifications as - flimsy.

Nothing looks similar in blocking accounts associated with bitcoin securing funds of your customers. No other bank for now has issued a threat like this.


Why is only the Union Bank trying to stop these transactions? and why the Central Bank of Nigeria trying to quench crypto transations in Commercial Banks? Post your answers and suggestions below.
Thanks.
Rooney N, a Camer cryptoAnalyst