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Outcry Greets CBN’s Order Directing Banks To Close Accounts Related To Cryptocurrencies

By Edna Wande
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CBN Orders Closure Of Accounts Trading Cryptocurrencies, Prohibits Banks From Processing Digital Currency TransactionsCentral Bank of Nigeria’s directive ordering banks and other financial institutions to close customer accounts used in trading cryptocurrencies and other related transactions has been greeted with harsh criticism from many Nigerians.

The apex bank’s directive was stated in a letter dated February 5 which was signed by Bello Hassan, Director of Banking Supervision and Musa I. Jimoh, Director of Payments System Management Department.

Read Also: CBN Orders Closure Of Accounts Trading Cryptocurrencies, Prohibits Banks From Processing Digital Currencies Transactions

The statement reads;

LETTER TO ALL DEPOSIT MONEY BANKS, NON-BANK FINANCIAL INSTITUTIONS AND OTHER FINANCIAL INSTITUTIONS

The Central of Bank of Nigeria’s (CBN) circular of January 12, 2017 ref FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs). Non Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members of the pubic on the risk associated with transactions in crypto currency refers.

Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in crypto currencies or facilitating payments for cryptocurrency exchanges is prohibited.

Accordingly, all DMBS, NBFCS and Ofis are directed to identify persons and/or entities transacting in or operating crypto currency exchanges within their 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.

Three years ago, CBN gave a similar directive, where it declared that it would not licence cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, amongst others.

Read Also: Frozen Accounts: CBN Accuses 20 #EndSARS Protesters Of Terrorism

The apex bank warned local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.

The new directive by CBN comes amid the soaring of trading in Bitcoin and other cryptocurrencies as global economy becomes increasingly volatile.

Many Nigerians have since jumped on this opportunity and started utilising crypto transactions to avoid the numerous challenges faced with traditional money transfer services.

The directive by the country’s bank regulator has however sparked an outrage from many Nigerians especially youths.

Read Also: Court Grants CBN’s Request To Freeze 20 Bank Accounts Linked To #EndSARS Protests (Photos)

Many condemned the Federal Government and CBN, alleging that its an attempt to shut down the source of livelihood for many youths and to further destroy the dwindling economy.

See some reactions from Twitter users below;

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