CBN Bans Banks, Other Financial Institutions From Dealing In Crypto transactions
The Central Bank of Nigeria, CBN, has cautioned commercial banks and all non-banking financial institutions to stop transaction in cryptocurrencies and other related transactions.
Nigeria’s apex bank further ordered banks to close all the accounts of customers transacting and dealing in Bitcoin immediately.
The information was contained in a circular released by the CBN on Friday, February 5, 2021.
Which reads below.
LETTER TO ALL DEPOSIT MONEY BANKS, NON-BANK FINANCIAL INSTITUTIONS AND OTHER FINANCIAL INSTITUTIONS
The Central of Bank of Nigeria‘s (CBN) circular of January 12, 2017 refFPR/DIRIGEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs). Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members, of the pubic on the risk associated with transactions in crypto currency refers.
Further to earlier regulatory directives on the subject, the Bank hereby wishes toremind regulated institutions that dealing in crypto currencies or facilitating payments for cryptocurrency exchanges is prohibited.
Accordingly, all DMBs, NBFIs and Ofis are directed to identify persons and/orentities transacting in or operating crypto currency exchanges within their systemsand ensure that such accounts are closed immediately.
Please note that breaches of this directive will attract severe regulatory sanctions.
This letter is with immediate effect.
Yours faithfully,Mir BELLO HASSAN DIRECTOR OF BANKING SUPERVISION MUSAL JOH DIRECTOR PAYMENTS SYSTEM MANAGEMENT DEPARTMENT
