CBN directs banks to close accounts related to cryptocurrency exchanges

The Central Bank of Nigeria (CBN) has directed financial institutions to immediately close the accounts of  persons or entities transacting in or operating cryptocurrency exchanges.

The apex bank gave the directive in a circular issued today February 5.warned and reminded local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.

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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.”

1.What is the statement released  mean: All deposit Money Banks, Non-Financial Institutions, other financial institutions are advice to close accounts of persons or entities involved in cryptocurrency transactions within Nigeria

2.Regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited in nigeria and it can be monitored since central bank has control over the banking sector and by a large extent can use its powers to determine how banks allow customers to use their bank accounts for transactions.

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3.Nigerians looking to trade in cryptocurrency will now have to seek other means outside of the banking sector if the policy is strictly implement.

4. Nigerian Financial Stakeholders  that breach the directive will attract serious regulatory sanctions.

5. If this policy is strictly implemented it will affect millions in demand from crypto from Nigeria  youth taking out a major source of investments for many.CBN directs banks to close accounts related to Crypto

 

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