Central Bank of Nigeria has directed commercial banks in the country to shut down the accounts of persons involved in cryptocurrency transactions within their systems.
This is in line with a circular released to Deposit Money Banks, non-bank financial institutions and other financial institutions on Friday.
Recall that CBN had said digital currencies such as bitcoin, litecoin and others are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions, In January 2017.
The apex bank also warned people who invest in cryptocurrencies, saying they would be unable to seek legal redress in the event of a collapse because they are not protected by the law. This was In February 2018.
“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,” the circular signed by Bello Hassan, director for banking supervision, and Musa Jimoh, director of the payment system management department, read.
“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.”
CBN noted that failure to adhere to this directive would attract severe sanctions.