The Central Bank of Nigeria (CBN) has directed banks to
close accounts of persons or entities involved in cryptocurrency transactions
within their systems.
This is according to a circular released to deposit money
banks (DMBs), non-bank financial institutions (NBFIs), and other financial
institutions (OFIs) on Friday.
In January 2017, CBN had said digital currencies such as
bitcoin, litecoin, and others are largely used in terrorism financing and money
laundering, considering the anonymity of virtual transactions.
It had also said that such currencies are not accepted as
legal tender in Nigeria.
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.
“Further to earlier regulatory directives on the subject,
the bank hereby wishes to remind regulated institutions that dealing in
cryptocurrencies or facilitating payments for cryptocurrency exchanges is
prohibited, ” the circular signed by Bello Hassan, director for banking
supervision, and Musa Jimoh, director of the payment system management
department, read.
“Accordingly, all DMBs, NBFIs and OFIs are directed to
identify persons and/or entities transacting in or operating cryptocurrency
exchanges within their systems and ensure that such accounts are closed
immediately.”
The apex bank noted that disobedience to the directive will
attract severe sanctions.
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