CBN Bans Cryptocurrency in Nigeria, Directs Banks to Close Accounts of Cryptocurrency Traders
Banks have been directed by the Central Bank of Nigeria (CBN) to close accounts within their systems of persons or entities involved in cryptocurrency transactions.
This is according to a circular released on Friday to deposit money banks (DMBs), non-bank financial institutions (NBFIs) and other financial institutions (OFIs).
In January 2017, CBN reported that digital currencies such as bitcoin, litecoin, and others are widely used in terrorist financing and money laundering, given the anonymity of virtual transactions.
It also stated that such currencies are not accepted as legal tenders in Nigeria.
CBN Bans Cryptocurrency in nigeria
In February 2018, Apex Bank also issued a warning to people investing in cryptocurrencies that they would not be able to seek legal redress in the event of a collapse because they are not protected by law.
“In addition to the earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited,” read the circular signed by Bello Hassan, director of banking supervision, and Musa Jimoh, director of the payment system management department.
“All DMBs, NBFIs and OFIs are therefore directed to identify persons and/or entities trading in or operating cryptocurrency exchanges within their systems and to ensure that such accounts are closed immediately.”
The apex bank noted that disobedience to the Directive would lead to severe sanctions.
# CBN Bans Cryptocurrency in nigeria