Nigeria Central Bank

Nigeria’s central bank has banned banks from dealing in cryptocurrencies or enabling payments for cryptocurrency exchanges.

The Nigerian Central Bank has directed Nigerian banks in the country to close all cryptocurrency-related accounts.

The bank said this in a statement on Friday.

The regulator prohibited all financial institutions from facilitating crypto currency payments in the country.

This directive is contained in a letter addressed to all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) on Friday.

This was confirmed to PREMIUM TIMES by Osita Nwanisobi, Nigeria’s central bank spokesman.

According to the letter, signed by Bello Hassan, director of banking supervision, and Musa Jimoh, director, payments system of management department, the apex bank directed all

DMBs, NBFIs and OFIs to identify persons and entities transacting in, or, operating crypto currency exchanges within their systems to close such accounts immediately.

In the letter, the CBN referenced a circular it issued in January 12,2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) as well as members of the public on the risk associated with transactions of crypto currency.

“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 is prohibited,” the statement reads.

The circular it issued in January 12,2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) as well as members of the public on the risk associated with transactions of crypto currency.

“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 is prohibited,” the statement reads.

“Please note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect,” the bank concluded.

Many Nigerian took to Twitter to register their complaints about the CBN’s directive.

A twitter user, Oyindamola @dammiedammie35, said

“How can you ban crypto transactions in 2021!! A currency that’s growing our economy little by little. People are making money legitimately. Doubling their money and taking care of their families with it!They just want us to suffer! Our government hates progress!! It’s saddeningBroken heart.”

Rinu #EndSARSFireWater pistol@SavvyRinu

“The Nigerian government has just legitimized a reason for security forces harassment/profiling. Finding any Crypto app or trading app on your phone.” #EndSARS

Attah of NigeriaFlag of Nigeria@Akortainment said:

“The Nigerian government is worried about BTC and the rest when they should’ve been focusing on Naira that’s moving like a baby. we no even know where that one dey crypto.”

Bitcoin

The world’s most popular cryptocurrency, Bitcoin as of Friday traded at $38,083 (N 14,471, 540), according to data fromj

This article is sourced from:https://www.premiumtimesng.com