The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to close accounts found engaging in cryptocurrency transactions on their systems.
The apex bank gave the directive in a circular dated Friday, February 5 sent to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).
The directive, the CBN said, was a follow-up to a January 2017 circular in which it warned that digital currencies were used in terrorism financing and money laundering, considering the anonymity of virtual transactions.
“The Central of Bank of Nigeria’s (CBN) circular of January 12, 2017 ref FPR/DIR/GEN/C1R,06/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members of the pubic so the risk associated with transactions In cryptocurrency refers.
“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 exchanges is prohibited. Accordingly, all DMBs.
“NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within tier systems and ensure that such accounts are closed immediately.
“Please note that breaches of this directive will attract severe regulatory sanctions.
“This letter is with immediate effect.”
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