Nigerian Crypto Exchange Boss: CBN Directive Led Shift of Trades From Centralized Exchanges to Black Market Exchanges

It has been more than six months since the central bank of Nigeria (CBN) urged banks to stop serving customers from the cryptocurrency industry. While the measure appears to have succeeded in decoupling crypto assets from the banking ecosystem, the policy has led to the growth of peer-to-peer trading.

“The actions of the Central Bank of Nigeria have led to increased activity on the black market”
As some reports show, Nigeria’s position as the largest cryptocurrency Sunday in Africa is indisputable. CBN, for its part, has completed its regular arguments against cryptocurrencies with the usual assurances that Nigeria will have its own digital currency.

To understand these dynamics and their impact on the Nigerian crypto domain, Bitcoin.com the news reached Chiagozi Iwu, CEO and co-founder of the Nigerian crypto exchange Naijacrypto. Below you will find Iwu answers to written questions.

Bitcoin.com news (BCN): can you briefly explain how the CBN directive affects your business?

Chiagozie Iwu (CI): the CBN directive, which prohibits banks from cooperating with crypto companies, affected us as follows: in the first stage, our bank accounts were closed and we had to transfer money to alternative accounts. We have suspended fiat deposits but left withdrawals open. The move was to allow customers to move freely without panicking. This actually led to a reduction in reserves, but the trust was retained. Some foreign exchanges closed both deposits and withdrawals and raised the price of the cryptocurrency to the naira.

About two weeks after the ban, Naijacrypto switched to a decidedly controlled peer-to-peer method for deposits that gives it access to the stock market. Although growth was slowed by the directive, growth still occurred, but the stock market was not as fast as it had grown before the CBN directive.

The stock market has become too judgmental in terms of business activities to mitigate the impact of unpredictable operational pressure and

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