CBN directs banks to close accounts of cryptocurrency traders
The Central Bank of Nigeria (CBN) has directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.
The apex bank made this known in a circular released to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs) on Friday.
In January 2017, CBN had said digital currencies such as bitcoin, litecoin, and others are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions. It had also said that such currencies are not accepted as legal tender in Nigeria.
In February 2018, the apex bank also issued a warning to people who invest in cryptocurrencies, saying they would be unable to seek legal redress in the event of collapse because they are not protected by the law.
“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, ” the circular signed by Bello Hassan, director for banking supervision, and Musa Jimoh, director of the payment system management department, read.
“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.”
The apex bank noted that disobedience to the directive will attract severe sanctions.
it will be good to prevent the usage in a bad ways but banning it is not good cuz it will hinder legit business who depends on it for good purposes…..
I think for the reason you stated, you have the right to do so in order to prevent incessant terrorism in the country.
Now, what is going to be the benefit of those who have invested into it. This is bad ooo.
I hope this decision also won’t affect Nigeria economy because we are still crawling for now.
Without closing those accounts, can’t them do the investigation and find out those people that are sponsoring terrorism in the country.