Cryptocurrencies breed illegal activities, raise risks – CBN

The Central Bank of Nigeria (CBN) has disclosed the reasons behind its decision to ban cryptocurrency-related transactions in the country.

According to a statement on Sunday by Osita Nwanisobi, Acting Director, Corporate Communications of the Apex bank, he said the digital currency could be used for money laundering and terrorism.

He noted that the ban on such transactions will not have any negative impact on fintechs.

The statement reads;

“The recent regulatory directive became necessary to protect the financial system and the generality of Nigerians (including the youth population) from the risks inherent in crypto assets transactions, which have escalated in recent times, with dire consequences for the integrity of the financial system and financial stability.

“Due to the fact that cryptocurrencies are largely speculative, anonymous and untraceable they are increasingly being used for money laundering, terrorism financing and other criminal activities.

“Small retail and unsophisticated investors also face high probability of loss due to the high volatility of the investments in recent times.

“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators.”