WikiFX report: Cryptocurrency: Luno resumes naira deposit, withdrawal for Nigerians

Nigerians trading cryptocurrency on Luno will be able to deposit and withdraw in local currency from November, the trading platform said on Monday.

“Were thrilled to announce that deposits and withdrawals in Naira will resume on the Luno platform in November,” Luno told its users in an email.

Luno halted naira deposit and withdrawal for Nigerian cryptocurrency traders in February after the Central Bank of Nigeria (CBN) prohibited cryptocurrency trading.

The ban on cryptocurrency forced changes in the operations of Luno and other Nigerian fintech companies into cryptocurrency trading.

However, Luno disclosed that the withdrawal and depositing of funds for Nigerian users will be done through a third-party platform.

“You will be able to deposit and withdraw funds to and from the Luno platform using vouchers purchased and redeemed through a trusted third party provider,” Luno said.

“We believe that this is the safest and easiest-to-use solution currently available to our customers in Nigeria and look forward to you experiencing it for yourselves.”

Luno warns users that it “does not set the price of bitcoin or any cryptocurrencies, we only facilitate transactions between customers.”

“The return of Naira deposits and withdrawals may cause significant price volatility, with the release of pent-up customer demand to buy and sell cryptocurrency causing unusual market behaviour that could last for several weeks,” Luno said.