CBN directs banks to close accounts related to cryptocurrencies

CBN directs banks to close accounts related to cryptocurrencies

- CBN has issued a stern warning to all banks and other financial institutions in the country

- The apex bank made the directive on Friday, February 5

- According to the CBN, dealing with cryptocurrencies or facilitating payments for the cryptocurrency is now illegal

PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!

The Central Bank of Nigeria (CBN) has directed all banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

The Guardian reports that this was contained in a circular issued on Friday, February 5, distributed to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs).

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

CBN directs banks to close accounts related to cryptocurrencies

The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has directed banks to close accounts related to cryptocurrencies. Credit: @Godwin_fiele
Source: UGC

Legit.ng gathered that the apex court told the regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

FG advises Nigerians to claim dormant account balances, unclaimed dividends now

The CBN 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."

It also warned local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.

According to the report, the CBN had in January 2017 said digital currencies such as bitcoin, litecoin, and others are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions.

The CBN said virtual currencies are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions.

PAY ATTENTION: Get the Latest Nigerian News Anywhere 24/7. Spend less on the Internet!

Meanwhile, Legit.ng had previously reported that the presidency announced that the Central Bank of Nigeria (CBN) so far disbursed N14.35 billion to the Distribution Companies of Nigeria (DisCos) to cover the procurement of 263,860 meters under the National Mass Metering Programme.

Additional polling units to be created across Nigeria as INEC begins process

It was reported that this information was contained in a tweet by the verified handle of the presidency on Thursday, January 21.

According to the CBN, the facility disbursed is a loan that must be repaid by the DisCos on the basis of the previously agreed amortisation schedule.

In a related report, as part of the N-Power exit plan, the federal government said beneficiaries who have concluded the two-year job programme would be engaged to access permanent job opportunities or business prospects.

The new development was announced on Wednesday, January 20, by the minister of humanitarian affairs, disaster management and social development, Sadiya Farouq.

Source: Legit Nigeria

Online view pixel