‘Customer funds are completely safe’ — Crypto platforms assure traders

Cryptocurrency trading platforms have assured Nigerian traders that their funds are safe despite the new directive from the Central Bank of Nigeria (CBN).

In a circular released to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs) on Friday, CBN directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

Reacting in a statement, Luno, a cryptocurrency platform, said customers need not panic as their funds remain safe.

The platform urged crypto traders to exercise patience, adding that “there’s no need to take any action regarding your account at this time”.

Luno explained that Naira deposit methods are currently affected on its platform as deposits via PayU and Flutterwave are unavailable until further notice.

“Luno will continue to operate as normal while we seek further clarity from the authorities. Some Naira deposit methods are currently affected, please check the status page for updates. Withdrawals are unaffected and will continue to be processed, but may take longer than usual. All customer funds are completely safe,” the statement reads.

“There’s no need to take any action regarding your account at this time. We will update our customers on all incoming developments as soon as we receive further information, and certainly well in advance should withdrawals be affected.”

Also, Binance, another cryptocurrency platform, in a statement, said it is “monitoring the situation closely”.

Binance said funds on its platform remains safe, but added that its Naira payment partners are suspending deposit services until further notice.

“Please note all your funds on Binance.com remain safe and crypto services on Binance.com will continue as normal. However, our NGN payment partners are suspending deposit services until further notice. From 7PM (GMT*1) on Feb 5th 2021,” the statement reads

“Binance will temporarily suspend NGN deposits through our fiat partner channels. Withdrawal services remain normal and will continue to be processed but might take slightly longer time than usual. We apologise for any inconvenience this may cause.”

In February 2018, the apex bank also issued a warning to people who invest in cryptocurrencies, saying they would be unable to seek legal redress in the event of collapse because they are not protected by the law.