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Joseph Olaoluwa
The Central Bank has ordered banks and other financial institutions to identify persons and entities operating crypto currency exchanges and close all such accounts.
This drew the ire of experts who criticised the apex bank for not being prepared for modern financial regulation.
The CBN stated that dealing with crypto currencies and facilitating payments through it was prohibited in the country.
This was disclosed in a circular on Friday titled ‘Letter to all Deposit Money Banks, non-bank financial institutions and other financial institutions’.
The circular was signed by the Director of Banking Supervision, Bello Hassan; and the Director of Payments System Management Department.
Archbishop Sam Zuga has reacted to the Central Bank of Nigeria’s (CBN) new order on Cryptocurrency. The Apex bank had directed Deposit Money Banks (DMBs) and other financial institutions to close accounts of persons who are using their systems for cryptocurrency trading.
Festus Akanbi
The Central Bank of Nigeria yesterday directed banks and other financial institutions to immediately close any accounts dealing in cryptocurrency or facilitating payment for crypto currency exchange, with immediate effect.
A cryptocurrency (or crypto) is a digital unregulated currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in the currency, not backed by any government, is to trade for profit, with speculators at times driving prices skyward.
The banking regulatory authorities directed banks to expose any individual and entity running such accounts, warning that failure to adhere to the directives would attract strict sanctions.
Threatens severe sanction for breaches
Festus Akanbi
The Central Bank of Nigeria has directed banks and other financial institutions to immediately close down any accounts dealing in crypto currencies or facilitating payment for crypto currency exchange with immediate effect.
The banking regulatory authorities also directed banks to unveil the identities of individuals and entities running such accounts, warning that failure to adhere to the directives would attract strict sanctions.
The apex bank, in a circular on Friday 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 crypto currency.
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The Central Bank of Nigeria has ordered banks and other financial institutions to identify persons and entities operating cryptocurrency exchanges and close all such accounts.
It stated that dealing with cryptocurrencies and facilitating payments through them are illegal in the country.
This was disclosed in a circular titled ‘Letter to all Deposit Money Banks, non-bank financial institutions and other financial institutions’ Friday.
The circular was signed by the Director of Banking Supervision, Bello Hassan; and the Director of Payments System Management Department.
It read, “The Central Bank of Nigeria circular of January 12, 2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned the Deposit Money Banks, non-bank financial institutions, other financial institutions and members of the public on the risk associated with transactions in cryptocurrency refers.