Close Accounts Of Cryptocurrency Traders- CBN Directs Banks

Cryptocurrencies straightnews
Cryptocurrencies

Nigerian  financial banks are directed to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

The Central Bank of Nigeria (CBN) gave the directive in a circular issued Friday, February 5.

The circular was addressed to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

In January 2017, the CBN had in a statement released, described Bitcoin, Litecoin, and others as digital currencies used largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions and that such currencies are not accepted as legal tender in Nigeria.

Also in February 2018, the apex bank warned Nigerians against trading in such digital currencies, stating that should any transactions with such currencies collapse, they wouldn’t be able to seek any redress.

The statement was released by Bello Hassan, the director for banking supervision, and Musa Jimoh, director of the payment system management department.

It reads, ”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.

”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.”