CBN bans cryptocurrency trading in Nigeria
The apex bank has warned that financial institutions who breach this directive would face severe sanctions.
The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) and other financial institutions to close accounts of persons who are using their systems for cryptocurrency trading.
A cryptocurrency is a virtual or digital currency that appreciates or depreciates on the whims of market forces.
Trading with Bitcoin – a cryptocurrency type – has gained traction globally and in Nigeria lately; and most young people have been investing in the cryptocurrency world, buying and selling bitcoin and making profit for themselves.
But the apex bank is clearly not a fan of digital currencies.
In a statement signed by Bello Hassan, Director of Banking Supervision; and Musa Jimoh, Director of Payments System Management Department, dated February 5, 2021 and referenced: BSD/DIR/GEN/LAB/14/001, the CBN said: “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.
See letter below:
