The Central Bank of Nigeria (CBN) has ordered all banks and financial institutions in the country to close the accounts of cryptocurrency exchanges in the country.
This new instruction was contained in a circular issued by the apex on bank on Friday.
It noted that this latest directive was extension of earlier warnings from the bank about the risks associated with digital currencies.
It stated, “The Central Bank of Nigeria’s (CBN) circular of January 12, 2017 ref: FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members of the public on the risk associated with transactions in cryptocurrency refers,” CBN said.
“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.”
The CBN also warned that banks and financial institution that breach the new directive would have to deal with severe regulatory sanctions.
