CBN orders banks to close cryptocurrency accounts

A cryptocurrency (or crypto) is a digital unregulated currency that could be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions.CBN orders banks to close cryptocurrency accounts

The Central Bank of Nigeria has directed banks in the country to close all cryptocurrency-related accounts.

The bank said this in a statement on Friday in a letter that has now gone viral and confirmed by Osita Nwanisobi, CBN spokesman..

The regulator prohibited all financial institutions from facilitating crypto currency payments in the country.

This directive is contained in a letter addressed to all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) on Friday.

According to the letter, signed by Bello Hassan, director of banking supervision, and Musa Jimoh, director, payments system of management department, the apex bank directed all

DMBs, NBFIs and OFIs to identify persons and entities transacting in, or, operating crypto currency exchanges within their systems to close such accounts immediately.

In the letter, the CBN referenced a circular it issued in January 12,2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs)and other financial institutions (OFIs) as well as members of the public on the risk associated with transactions of crypto currency.

“Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency is prohibited,” the statement reads.

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