Nigeria’s apex bank, Central Bank of Nigeria, CBN, has ordered Deposit Money Banks (DMBs) and other financial institutions to close accounts of persons who are using their systems for cryptocurrency trading in the country.
A cryptocurrency is a virtual or digital currency that appreciates or depreciates on the whims of market forces.
A statement jointly signed by the Director of Banking Supervision, Bello Hassan and Director of Payments System Management Department, Musa Jimoh on Friday, the CBN said that facilitating payments for cryptocurrency exchange is prohibited.
“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in crypto currencies or facilitating payments for cryptocurrency exchange is prohibited.
“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating crypto currency exchanges within their systems and ensure that such accounts are closed immediately,” the statement reads.
The CBN also declared that breaches of its directive will attract severe regulatory sanctions.
