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CBN Bans Bitcoin Trade In Nigeria, Orders Banks To Shut Cryto Accounts
The Central Bank of Nigeria has directed banks and other financial institutions to close customer accounts used in trading cryptocurrencies and other related transactions.
The directive is contained in a circular issued by the apex bank on Friday.
The Nigerian bank regulator ordered deposit money banks, non-bank financial institutions and other financial institutions to “identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately. “
Recall that in February 2018, the apex bank also issued a warning to people who invest in cryptocurrencies, saying they would be unable to seek legal redress in the event of collapse because they are not protected by the law.
“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, ” the circular signed by Bello Hassan, director for banking supervision, and Musa Jimoh, director of the payment system management department, read.
The CBN has consistently shown deep aversion for cryptocurrencies, which have become a major legal tender of transaction across the world in recent years.
In the past few weeks, trading in Bitcoin and other cryptocurrencies has skyrocketed as the global economy becomes increasingly volatile. Nigerians have started utilising crypto transactions to avoid the bypass challenges faced with traditional money transfer services.
In 2020, crypto marketplace Paxful reported that Nigeria had the world’s second-largest Bitcoin by trading volume. In the last five years, Nigerians have traded 60,215 Bitcoins, or more than $566 million USD, it was reported.
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