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CBN prohibits trading in cryptocurrencies, orders banks to close accounts of operators

By on February 5, 2021 0 194 Views

By Oludare Mayowa

The Central Bank of Nigeria (CBN) on Friday prohibits dealing in crypto currencies or facilitating payments for cryptocurrency exchanges in the country and directed banks and other financial institutions in the country to close the accounts used for operations.

The regulatory bank said in a circular to banks signed by Bello Hassan, Director of Banking Supervision and Musa I Jimoh Director, Payments System Management Department that “Dealing in crypto currencies or facilitating payments for cryptocurrency exchanges is prohibited.”

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“Further to 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.”

The circular directed banks and other financial institutions “to identify persons and/or entities transacting in or operating crypto currency exchanges within their systems and ensure that such accounts are closed immediately.”

The CBN warned that any financial institution that fails to comply with its directive on the closure of accounts of cryptocurrency operations will be sanctioned.

According to the circular, the regulatory bank had in the past banks and other financial institutions and members of the pubic on the risk associated with transactions in crypto currency refers.

“The Central Bank of Nigeria circular of January 12, 2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned the Deposit Money Banks, non-bank financial institutions, other financial institutions and members of the public on the risk associated with transactions in cryptocurrency refers.”

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