NDIC director says Nigerians who trade in bitcoins are “gamblers”

Photo Credit: Fortune

Mohammed Umar, a director at Nigeria’s financial sector insurance regulator, Nigerian Deposit Insurance Corporation (NDIC), has said that Nigerians who trade in digital currencies such as Bitcoins are “gamblers” and “does so at his own risk.”

“Nigerians must understand that adequate notice has been issued by all financial sector regulatory authorities, namely Central Bank of Nigeria, CBN, and Nigerian Deposit Insurance Corporation, NDIC, to warn Nigerians who want to trade in bitcoins as gamblers. They can only do so at their own risk. The CBN cannot say anyone cannot trade with it and NDIC will not insure any trading in any currency not issued by the CBN,” says Umar.

The director further warned Nigerians against the risk of trading with digital currencies not issued by the Central Bank of Nigeria (CBN), adding that an inter-agency committee comprising the NDIC, Ministry of Justice, Economic and Financial Crimes Commission (EFCC), Nigeria Police, Department of State Services, DSS and other relevant agencies are closely monitoring the activities of digital money operators to ensure Nigerians were not exposed to unnecessary risks.

This week, Bitcoin hit $10,000, an all-time high, although it fell more than $1,000 in the span of about 10 minutes on the CoinDesk Bitcoin Price Index (BPI) yesterday.