The Central Bank of Nigeria (CBN) has ordered Nigerian banks to close the accounts of people who are investors in cryptocurrency.
According to the circular released on Friday, the Deposit Money Banks (DMBs), Non-bank Financial Institutions (NBFIs), and other financial institutions (OFIs) are enforce this.
The CBN posited that the cryptocurrencies are not accepted as legal tender in Nigeria.
The circular signed by Bello Hassan, director for banking supervision, and Musa Jimoh, director of the payment system management department said: “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.
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“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.
Recall that the CBN had in January 2017 stated that the cryptocurrencies are largely used in financing terrorism and money laundering.