The central bank termed digital currencies as risky because “they are neither subject to any regulation and supervision mechanisms nor a central regulatory authority.”
Indian Minister Anurag Thakur said the government would put investors at the forefront of their legislative effort, though it remains unclear exactly how they intend to protect investors.
Nigerian fintech startups, including those in the digital currency sector, have been relying on the bank verification number (BVN) as a primary know-your-customer (KYC) and anti-money laundering (AML) tool.
The central bank’s directive only applied to banks, prohibiting them from processing transactions related to digital currencies, an official said.
Once it is passed by parliament, the bill will give residents a six-month grace period to liquidate all their digital currencies.
The Internet and Mobile Association of India has issued a plea to government not to ban digital currencies, but to regulate instead, as a means to unlock the “considerable benefits” of the sector.
The Central Bank of Nigeria announced its “Naira 4 Dollar Scheme” recently, targeting diaspora remittances.
Finance Minister Nirmala Sitharaman assured that despite reports of government hostility against the industry, it will take a measured approach.
Users of the digital currency derivative platform in the U.K. have until March 31 to close all their positions and withdraw their balances, according to Bybit.
Despite thriving for years now, Nigeria’s digital currency industry faces its biggest threat yet following a central bank ban that has denied it basic banking services.
Speaking at a recent event, Yemi Osinbajo rebuked the recent ban on digital currencies, advocating for Nigerian authorities to regulate the industry.