CBN bans operation of cryptocurrency accounts

The Central Bank of Nigeria has ordered banks and other financial institutions to immediately close any account dealing in cryptocurrency or facilitating payments for the exchange.

It 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 warned all financial institutions and members of the public on the risk associated with transactions in cryptocurrency.

The circular signed by the CBN’s Director of Banking Supervision, Bello Hassan, read in part, “Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

“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.

“Please, note that breaches of this directive will attract severe regulatory sanctions. The letter takes immediate effect.”