CBN bans banks from dealing in crypto currency

Admin l Friday, February 5, 2021

 

ABUJA, Nigeria – The Central Bank of Nigeria has prohibited banks and other financial institutions  from dealing in crypto currency or facilitating payment for crypto currency exchanges.

In a circular dated February 5, 2021, signed by Bello Hassan, Director of Banking Supervision and Musa I Jimoh, Director Payments System Management Department, the CBN also directed all Deposit Money Banks, DMBS, National Banks and  Other Financial Institutions (OFIs)to identify persons or entities transacting in or operating crypto currency exchanges with their systems and ensure that such accounts are closed with immediate effect.

CBN warned that  breaches of this directive will attract severe regulatory sanctions

“Further to earlier regulatory directives on the subject,  the bank hereby wishes to remind regulated institutions that dealing in  crypto currencies or facilitating payment for crypto currency exchanges is prohibited.

“Accordingly all DMBs, NBFLs and OFIs are directed  to identify persons and or  entities transacting in or operating  crypto currency 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 CBN said.