BREAKING: Nigerian Court Unfreezes Accounts Blocked For Cryptocurrency Trading In Big Win For Traders

A Federal High Court sitting in Abuja on Monday vacated an interim order which directed the Central Bank of Nigeria (CBN) to freeze accounts of two companies in two banks that had been linked to cryptocurrency buying and selling.

The agency, Rise Vest Technologies Ltd, is without doubt one of the companies providing brokerage providers for Nigerians to put money into overseas shares.

BREAKING: Nigerian Court Unfreezes Accounts Blocked For Cryptocurrency Trading In Big Win For Traders 2

CBN claimed, amongst others, that a few of such offers contravened its directive and had been a part of what should be blamed for the naira weaker towards the US greenback.

Justice Taiwo O. Taiwo in his judgement held that the CBN couldn’t depend on a mere round to freeze the financial institution accounts of an organization utilizing its accounts to commerce in cryptocurrency.

According to the Judge, the CBN failed to supply any legislation exhibiting that it’s unlawful to deal in cryptocurrency in Nigeria, including that the CBN round, referenced as BSD/DIR/PUB/LAB/014/001 of February 5, 2021, is just not a legislation.

He, nevertheless, ordered the banks – Zenith Bank Plc and Guaranty Trust Bank – to right away grant the agency unfettered entry to the accounts.

The order was made by the court docket whereas ruling on a Motion on Notice introduced by Rise Vest Technologies, praying the court docket to discharge an interim freezing order granted by the court docket on August 17, 2021, in Suit No: FHC/ABJ/CS/822/2021

CBN Governor (Plaintiff/Respondent) V Rise West Technologies Ltd (1st Defendant/Applicant) & 5 Others, are the events to the swimsuit.

Submission had earlier been made by Rest Vest Technologies’ counsel, Mr Seni Adio (SAN), that CBN didn’t current any proof that the defendant engaged in any illegal conduct, including that the CBN didn’t meet its burden of proof in help of its allegations. 

But CBN’s counsel, Mr Mathew Onoja argued that the ex parte orders the court docket sought to be put aside had been correct, lawful and legitimate.

He contented that the orders of August 17, 2021 within the swimsuit had been in accordance with the provisions of Section 97 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2021, which empowered the Plaintiff/Respondent to invoke the jurisdiction of the Court through an ex parte utility. 

Justice Taiwo, in his ruling, upheld Adio’s argument, whereas he noticed, amongst others, that though the CBN had energy to analyze any infraction, the infraction should relate to BOFIA or every other enactment administered by the regulator. 

“I have perused the counter affidavit of the Respondent and I see that the reason for freezing the account of the applicant is based on the alleged infraction of the circular of the CBN. 

“The law is trite that any conduct that must be sanctioned must be expressly stated in a written law.

“Being unknown to law, circulars cannot create an offence because it was not shown to have been issued under an order, Act, Law or Statute.

“The learned counsel for the respondent has also raised the issue of public policy in his submissions against the application. 

“Can this court decide this application based on public policy as being urged on it by the learned counsel for the respondent? I think not.

“I hereby discharge the interim freezing order of this court made on August 17, 2021, made against the defendant/ applicant,” Justice Taiwo held. 

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BREAKING: Nigerian Court Unfreezes Accounts Blocked For Cryptocurrency Trading In Big Win For Traders

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