The Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to close all accounts of identified persons and entities operating on cryptocurrency.
CBN, in its defense, said the use of cryptocurrencies in facilitating payments is illegal in the country.
The order was revealed in a circular released on Friday, titled, ‘Letter to all Deposit Money Banks, non-bank financial institutions and other financial institutions’.
The circular was signed by Bello Hassan, the Director of Banking Supervision and the Director of Payments System Management Department.
It reads in part “The Central Bank of Nigeria circular of January 12, 2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned the Deposit Money Banks, non-bank financial institutions, other financial institutions and members of the public on the risk associated with transactions in cryptocurrency refers.
“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.
“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.
“Please, note that breaches of this directive will attract severe regulatory sanctions.
“The letter takes immediate effect.”