Nigerian central bank orders closure of cryptocurrency accounts

The Central Bank of Nigeria has directed banks and other financial institutions in the country to close all cryptocurrency accounts within their systems.

The CBN gave the directive on Friday in a circular, titled ‘Letter to all Deposit Money Banks, non-bank financial institutions and other financial institutions’.

It noted that it had in January cautioned banks, other financial institutions and the general public on the risk associated with transactions in cryptocurrency.

The central bank said, “Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

“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.”

The CBN said breach of the directive would attract severe regulatory sanctions.