The Central Bank of Nigeria, CBN, has decided to shut out Nigeria’s financial system from cryptocurrencies with a directive to all deposit institutions not to have anything to do with them.
The directive to Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Non-Bank Financial Institutions (NBFIs) local financial institutions specifically directs them not to facilitate transactions in crypto or facilitating payments for crypto exchanges. The CBN warned that violation of the directive will attract severe sanctions.
The circular signed by Director of Banking Supervision, Bello Hassan stated:”
The CBN circular of January 12, 2017 ref FPRIDIRGENT R/06/010 which DMBs, NBFIs and OFIs and members of the public on the risks associated with transactions in crypto currency refers.
“Further to other regulatory directive on the subject, the bank hereby wishes to remind regulated institutions that dealing in crypto currencies or facilitating payment from cryptocurrency exchanges is prohibited.
“Accordingly, or DMBs, OFIs, NBFIs, are advised to identify persons and /or entities transacting in or operating crypto currency exchanges within their system and ensure that such accounts are closed immediately.”
A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions.
Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.