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Buy Bitcoin At Your Peril, Gamblers: Insurance Regulator Of Nigeria

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Nigeria's financial sector insurance regulator has warned its citizens of the "bad news". lack of insurance coverage for cryptocurrency risks like Bitcoin.

The Nigeria Deposit Insurance Corporation (NDIC) has warned retail investors that the authority will not offer any insurance coverage to those who deal with cryptocurrencies, or even digital currencies not issued by the country's central bank.
NDIC Director of Research for Policy and International Relations, Mohammed Umar, said at a two-day workshop on the financial turmoil of digital currencies last week. .

"Financial regulators do not catch up with the digital currency race in Nigeria," Umar said, saying "no country in the world allows its citizens to use digital currencies as unissued currency." by the Central Bank ". The remark, strictly speaking, is false. For example, Japanese legislation recognizing bitcoin as a legal means of payment began in April of this year. State officials in other countries such as Iran and Bahrain have publicly revealed their intentions to adopt or incorporate bitcoin into their societies.

Emphasizing previous warnings issued by multiple financial authorities, including the country's central bank, the official pointed out that public notices are "to warn Nigerians who want to trade bitcoins as players".

He added that adopters and traders would not be protected by protective measures put in place by the regulator.

The grievor stated:

If you can buy a bitcoin, no one will stop you. It is at your own risk. A bitcoin is not covered by CBN rules [Central Bank of Nigeria] and NDIC will not insure it. We have always warned Nigerians that anyone trading in bitcoin does so at their own risk.

Earlier this year, Nigeria's central bank sent a notice to the country's financial institutions warning them of cryptocurrency transactions, forcing them not to use, hold, or trade cryptocurrencies. Five specific currencies figured in the circular, namely Bitcoin, Ripple, Monero, Litecoin and Dogecoin. Although the media often misunderstood it as a widespread ban on cryptocurrency, the notice was rather a warning that probably led to the closure of banking services for companies and local bitcoin exchanges. .

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In September, the deputy director of the central bank publicly admitted that the authority will not be able to stop the disruptive tide caused by cryptocurrences blocked. Speaking at the same conference, the head of the cyberspace watchdog in Nigeria also saw the inevitability of cryptocurrences entering society as "facts that we face, that we like it or not. "

Recent remarks by Nigeria's insurance regulator add to previous statements, revealing the lack of effective means to curb ordinary investors and citizens adopting decentralized cryptocurrencies.

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