The Central Bank of Nigeria (CBN) has ordered all banks to close accounts of anyone who transacts in cryptocurrency.
Cryptocurrency is a virtual or digital currency that appreciates or depreciates on the whims of market forces.
The order was contained in a circular to banks and other financial institutions, signed on Friday by the Director of Banking Supervision, Bello Hassan, and it is expected to take effect immediately.
But CBN’s action has vontinued to generate mixed reactions with some analysts applauded the regulator for timely intervention. They argue that the trading which is like s ‘cult’ has continued to mount pressure on the foreign exchange market as well as distorting liquidity management by the apex bank.
To them the feferal government and CBN may have succeeded in moving the country backwards.
“The Central Bank of Nigeria 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 and members of the public on the risk associated with transactions in cryptocurrency refers.
“Further to earlier regulatory directions on the subject, the bank hereby wishes to remind regulated institutions dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.
“Accordingly, all DMB’s NBFI’s or OFI’s 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.
“Please, note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect”.