The Central Bank of Nigeria (CBN) has instructed financial institutions in the nation to close banks accounts of firms or persons transacting in or operating cryptocurrencies.
The CBN in a circular to financial institutions dated 5th February 2021 prohibited regulated financial institutions from “dealing in crypto currencies or facilitating payments for crypto currency exchanges”.
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The CBN in the circular reminded Deposit Money Banks, Non-Financial Institutions, other financial institutions and members of the public that the Apex bank had on 12 January, 2017 warned of the risks associated with transactions in cryptocurrency.
The apex bank confirmed the prohibition of regulated financial institutions from dealing in Cryptocurrencies via tweet Friday evening.
“#CBN prohibits regulated institutions from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges,” CBN wrote.
#CBN prohibits regulated institutions from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges…https://t.co/OQ6MvQB8O1
— Central Bank of Nigeria (@cenbank) February 5, 2021
The Central Bank also added that “breaches of this directive will attract severe regulatory sanctions.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
