Breaking! CBN Orders Banks To Close Accounts Linked To Cryptocurrency Trading [Letter]

Related stories

Defection: You Don’t Blame People For Bailing Out Of Sinking Ship, Tinubu Taunts Critics

By Kolawole Ojebisi President Bola Ahmed Tinubu has taunted those...

BREAKING! Trump Blocks Harvard University’s International Students Enrollment

By Abiola Olawale The administration of United States President Donald...

Minority Leader Kicks As Another LP Legislator Dumps Party For APC

By Kolawole Ojebisi The ruling All Progressives Congress (APC), on...

From Segun Amure, (The New Diplomat’s Abuja Bureau)

The Federal government of Nigeria through its apex bank, Central Bank of Nigeria (CBN) on Friday, directed all banks and other financial institutions operating in the country to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

In a letter to Deposit Money Banks (DMBs), Non-bank Financial Institutions (NBFIs), and Other Financial Institutions (OFIs), the CBN said crypto currencies are not accepted as legal tender in Nigeria.

The CBN in the correspondence dated February 5, 2021 and titled “Letter to All Deposit Money Banks, Non-Banks Financial Institutions and Other Financial Institutions”, instructed all financial institutions in the country to adhere to the directive.

The letter reads, “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 letter was signed by Bello Hassan, Director for banking supervision, and Musa Jimoh, director of the payment system management department.

“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 immediate.”

The circular stated further that “Please note that breaches of this directive will attract severe regulatory sanction.”

It would be recalled that the CBN in January 2017 had claimed digital currencies such as bitcoin, litecoin, and others are used in terrorism financing and money laundering, considering the anonymity of virtual transactions, however, the basis for this latest action by the CBN remains sketchy as many well-meaning Nigerians trade in cryptocurrencies to support livelihood and investment in the country.

In February 2018, the apex bank had also issued a warning to people who invest in cryptocurrencies, saying they would be unable to seek legal redress in the event of any collapse because they are not protected by the law.

'Dotun Akintomide
'Dotun Akintomide
'Dotun Akintomide's journalism works intersect business, environment, politics and developmental issues. Among a number of local and international publications, his work has appeared in the New York Times. He's a winner of the National Youth Service Corps (NYSC) Award. Currently, the Online Editor at The New Diplomat, Akintomide has produced reports that uniquely spoke to Nigeria's experience on Climate Change issues. When Akintomide is not writing, volunteering or working on a media project, you can find him seeing beautiful sites like the sandy beaches that bedecked the Lagos coastline.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

Latest News
Defection: You Don't Blame People For Bailing Out Of Sinking Ship, Tinubu Taunts CriticsBREAKING! Trump Blocks Harvard University's International Students EnrollmentUzodinma, Sanwo-Olu, Zulum, Other APC Governors Endorse Tinubu as 2027 Presidential FlagbearerMinority Leader Kicks As Another LP Legislator Dumps Party For APCTinubu Swears-In Kida, Ojulari, Others As NNPCL Board Members Seven Weeks After AppointmentNatasha vs Akpabio:FG Slams Criminal Charges Against Akpoti-UduaghanRelief as Dangote Refinery Slashes Petrol Prices by N15Côte d'Ivoire's Presidency Quashes Coup Speculation, Says Ouattara Still in ControlBeyond Ethnic Narratives: Building a Unified Nigeria Through Meritocracy and InnovationCoup rumours in Ivory Coast as president’s whereabouts remain unknownSeyi Makinde: Hungry Nigerians, Not Defectors, 'll Determine 2027 Election ResultsWhy Coalition Hasn't Adopted ADC As Political Party, ex-NGF DG, Lukman2027: Atiku, Peter Obi, El-Rufai, Others Didn't Adopt ADC As Coalition Platform, Says Salihu LukmanFresh Fears as Nigeria’s External Debt Payments Skyrocket By 50%Tinubu Transmits N1.481 Trillion 2025 Rivers State Budget to National Assembly
X whatsapp