CBN Gives Fresh Update On Cryptocurrency Ban

The Central Bank of Nigeria (CBN) has said there was no time the bank banned the activities of cryptocurrency in the country.
The CBN said what the bank did was to protect the banking sector from the activities of cryptocurrency and not a ban on its activities.

The Central Bank of Nigeria (CBN) has said there was no time the bank banned the activities of cryptocurrency in the country.

The apex bank’s governor, Godwin Emefiele, made the comment while speaking at the 30th seminar for Finance Correspondents and Business Editors organised by CBN in Abuja.

Emefiele, who was represented by the Deputy Governor, Corporates Services, Adamu Lamtek, said what the bank did was to protect the banking sector from the activities of cryptocurrency and not a ban on its activities.

“The CBN did not place restrictions from use of cryptocurrencies and we are not discouraging people from trading in it. What we have just done was to prohibit transactions on cryptocurrency in the banking sector,” he said.

CBN

The CBN had in a circular dated 5th February 2021 warned Deposit Money Banks, Non-Financial Institutions, and other financial institutions against doing business in crypto and other digital assets.

In the circular distributed to regulated financial firms, the apex bank warned local financial institutions against having any transaction in crypto or facilitating payments for crypto exchanges.

The CBN further instructed the financial institutions to immediately close the accounts of such persons or entities transacting in or operating cryptocurrency exchanges.