CBN's Ban Lift on Crypto to Benefit These Five Nigerian Cryptocurrency Startups
- When the central bank eventually lifts the cryptocurrency ban, NairaEX, BuyCoins, Bundle Africa will benefit from it
- The ban had previously affected these cryptocurrency exchanges including Yellow Card and Quidax
- These crypto firms were disconnected from their users by CBN directive which instructs banks to close digital asset accounts
There are a handful of cryptocurrency exchanges that will benefit from the decision of the Central Bank of Nigeria to bring digital currency back to life in the country.
It has been four months since Godwin Emefiele declared cryptocurrency won't be allowed as either payment or investment option in Nigeria. He labelled crypto a currency used for illegal activities.
But in a surprise move on Tuesday, the Apex bank chief hinted the financial regulator is considering allowing Nigerians openly trade cryptocurrency four months after directing banks to shut down crypto-linked accounts.
Emefiele said banks should stop dealing with cryptocurrency exchanges. These directive affected the exchange businesses with Nigerian users. But that hurdle will soon disappear once the CBN finally lifts the ban.
Source: Twitter
The decision will benefit the following Nigerian crypto exchanges:
NairaEX
Before the ban by the CBN in February, NairaEX had grown to become one of the most known Nigerian cryptocurrency exchanges, as it processed over 900,000 transactions from 130,000 users.
Like other cryptocurrency exchanges, NairaEX partnered with banks to enable its users to withdraw into Nigerian banks, while also offering real-time and automated payments in bitcoin. It was founded by David Ajala in 2015.
BuyCoins
BuyCoins was positioning itself among top African cryptocurrency exchanges before the CBN ban disrupted its operation. It had raised about $1 million to support its operation.
Founded by Ire Aderinokun and Timi Ajiboye in 2017, BuyCoins offer its users opportunities to invest in Bitcoin, Ethereum, Litecoin, USD Coin and USD Tether through its exchange.
Bundle Africa
Bundle enjoys backing of Binance, the world’s largest cryptocurrency exchange since it was created by Yele Bademosi in 2019. He had used his experience working for Binance to develop Bundle.
In September 2019, the Nigerian startup had raised $450,000 as pre-seed capital for its venture which is located in Nigeria and Ghana.
Yellow Card
It was not created by a Nigerian, but it operates within the country. Yellow Card has been in operation for five years before the CBN cut ties between cryptocurrency exchanges and their users.
Founded by Chris Maurice and Justin Poiroux, Yellow Card has processed over $35 million in transactions and has raised $1.5 million prior to the CBN ban. It also allows users to trade in popular digital currencies like Bitcoin, Litecoin, Ethereum and other crypto.
Quidax
Buchi Okoro and Uzo Awili created Quidax in 2017 to cater to the nascent cryptocurrency market then. It offered Bitcoin, Ethereum, Ripple, Litecoin and others to users interested in trading cryptocurrency.
Users of Quidax are allowed to use credit or debit card, and bank transfers to purchase cryptocurrency. Before the ban, it had raised capital investment worth $120,000 from a foreign investor, Techstars Toronto.
Meanwhile, Legit.ng had previously reported that naira continues to fall to dollar, as it depreciated in the black market and the official exchange rates; Naira had closed Wednesday with N493/$1.
The official rates closed at N411.50 to one dollar. The naira remains weak after it was devalued by the Central Bank of Nigeria following a unification of the Bank's rate and the NAFEX rate.
The financial regulator kept to its word by not unifying the exchange rates in line with the parallel market which the CBN described as a place where illegal businesses seek forex.
Source: Legit.ng
