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The Central Bank 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.
1.0 Introduction
In view of increasing consumer appetite for payment solutions and emerging disruptive technology in the financial services space, the Central Bank of Nigeria (CBN) has deemed it pertinent to ensure new and more flexible ways of engaging with the industry. One of the options being the use of a Regulatory Sandbox which is a formal process for firms to conduct live tests of new, innovative products, services, delivery channels, or business models in a controlled environment, with regulatory oversight, subject to appropriate conditions and safeguards. This would enable the Bank stay abreast of innovations while promoting a safe, reliable and efficient Payments System to foster innovation without compromising on the delivery of its mandate.
TODAY
December 18, 2020
The Central Bank of Nigeria (CBN) has directed payment switching and processing companies to stop local currency transfer of diaspora remittances received through International Money Transfer Operators (IMTOs), with a threat to revoke licences of defaulting firms.
The apex bank also directed Mobile Money Operators (MMOs) to disable wallets from receipt of funds from IMTOs.
The directives, according to CBN, were to ensure compliance with its recent policy which allows beneficiaries of diaspora remittances to receive the proceeds in foreign currency.
CBN gave these directives in a circular, yesterday, to IMTOs and Payment Service Providers (PSPs) titled, “Receipt of Diaspora Remittances: Additional Operational Guidelines”.
Nigeria: CBN Threatens Firms Over Diaspora Remittances in Local Currency allafrica.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from allafrica.com Daily Mail and Mail on Sunday newspapers.
By Babajide Komolafe
MONEY MAEKET
The Central Bank of Nigeria (CBN) has directed payment switching and processing companies to stop local currency transfer of diaspora remittances received through International Money Transfer Operators (IMTOs), with a threat to revoke licences of defaulting firms.
The apex bank also directed Mobile Money Operators (MMOs) to disable wallets from receipt of funds from IMTOs.
The directives, according to CBN, were to ensure compliance with its recent policy which allows beneficiaries of diaspora remittances to receive the proceeds in foreign currency.
CBN gave these directives in a circular, yesterday, to IMTOs and Payment Service Providers (PSPs) titled, “Receipt of Diaspora Remittances: Additional Operational Guidelines”.