CBN Insists Crypto Trading Is Illegal Transactions, Asks Court to Freeze Accounts of Fintech Firms

CBN Insists Crypto Trading Is Illegal Transactions, Asks Court to Freeze Accounts of Fintech Firms

  • The Central Bank of Nigeria (CBN) has urged a federal court in Abuja to freeze accounts of some fintech firms in the country
  • The apex court through the former attorney-general of the federation and minister of justice, Michael Aondoaka, filed the suit on Tuesday, August 17
  • Aondoakaa told the court that some of the firms were owned by individuals and organisations based in the United States

FCT, Abuja, The Central Bank of Nigeria (CBN) has insisted that all cryptocurrency trading is an illegal forex transaction in the country.

TheCable reports that the federal high court sitting in Abuja on Tuesday, August 17, granted the request of the CBN to freeze accounts belonging to some technology trading platforms offering local and foreign stocks.

Read also

We'll prosecute those spraying naira in social events, says CBN

CBN says crypto trading is an illegal transactions.
The Central Bank of Nigeria (CBN) has asked the court to freeze accounts of fintech firms. Credit: Chris J. Ratcliffe/Bloomberg
Source: Getty Images

Legit.ng gathered that in his ruling, Justice Ahmed Mohammed, granted the prayers of the apex bank to freeze the accounts of RiseVest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, and Trove Technologies Limited for 180 days.

The News also reports that the request was filed by former attorney-general of the federation and minister of justice, Michael Aondoaka, on behalf of the CBN.

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

The online medium said that some of the affected companies include Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Tech. Ltd., CTL/Business Expenses and Trove Technologies Limited.

Court empowers CBN to direct heads of banks to freeze some fintech accounts

The court order empowers the CBN to direct heads of banks in Nigeria to freeze forthwith all transactions on the 86 accounts on the list annexed to the CBN’s application and all other bank accounts of the defendants/respondents for a period of 180 days for the first set of defendants and 90 days for the second set.

Read also

COVID-19: Amid third wave reports, FG flags off second phase of vaccination

According to the report, the accounts are to be frozen pending the outcome of the investigation and inquiry currently being conducted by the CBN.

Aondoaka said that the application was premised on the grounds that the firms were using the foreign exchange sourced from the Nigerian market to purchase foreign bonds/shares in contravention of its directive issued in July 2015.

He accused the firms of operating without licences as asset management companies, adding that the firms violated the CBN directive contained in its circular referenced TED/FEM/FPC/GEN/01/012 and dated July 1, 2015.

The former minister also said that the forex deals by the defendants were undercutting the strength of the naira against the dollar.

He said there was the need to block 15 accounts of the first set of firms for 180 days to stop the firms from moving their funds out of Nigeria.

Aondoaka added:

“We need to write the embassy, we need to go to the Foreign Affairs, the minister will serve the U.S. to seek assistance so that we can block these leakages.”

Read also

Banks announce stiff punishment for customers involved in fraudulent FX purchase

CBN vows to prosecute those spraying Naira in social events

Meanwhile, Legit.ng had previously reported that the Central Bank of Nigeria (CBN) said it would work with the Nigeria Police Force (NPF) and other law enforcement agencies to ensure that anyone found abusing the naira such as spraying notes on social occasions is prosecuted.

It was reported that the apex bank spokesman, Osita Nwanisobi, made this known in a statement seen by Legit.ng on Tuesday, August 17.

The deputy governor, the corporate services department of the CBN, Edward Adamu, attributed the depreciation in the value of the naira to the effects of the COVID-19 pandemic on the economy.

Source: Legit.ng

Authors:
Wale Akinola avatar

Wale Akinola Wale Akinola is a passionate journalist and researcher. He is the Head of Desk, Politics and Current Arts, Legit.ng. He holds both B. A and Master’s degree in Communications and Language Arts from the University of Ibadan. He also holds a Diploma Certificate in Peace Journalism. He has over 15 years of work experience in both print and online media. You can reach him via +2348054137974 or wale.akinola@corp.legit.ng.

Online view pixel