The Central Bank of Nigeria (CBN), has dealt a deadly blow to businesses transacting in cryptocurrency in Nigeria. The apex bank has ordered all Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) to prohibit any account involved in dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges.
The Central Bank of Nigeria has said its 2017 prohibition on cryptocurrency activities and exchanges remain unchanged.
In a circular released by CBN to banks on February 5, 2021, they directed NBFIs and OFIs to identify persons and/or entities transacting in or operating cryptocurrency exchanges within tier systems and ensure that such accounts are closed immediately. Please note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect.”
The prohibition is expected to affect withdrawal and deposits into cryptocurrency wallets.
