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CBN SHUTS DOWN CRYPTOCURRENCY EXCHANGE BANK ACCOUNTS

The Central Bank of Nigeria has ordered financial institutions in the country to identify persons and entities transacting in cryptocurrencies and immediately shut their accounts. 


A memo sent to financial institutions, on Friday, February 5, from the CBN read: 

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. Accordingly, all DMBs NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within tier systems and ensure that such accounts are closed immediately.

READ ALSO: FORMER ATTORNEY GENERAL OF CROSS RIVER DISBARRED FOR FINANCIAL MISCONDUCT


Nigeria emerged the second-largest bitcoin market in the world on Paxful, and the largest in Africa in 2020 when about 60,215 volume of Bitcoin costing $566,668,692 was traded.


IMPLICATION: 


Bitcoin and other crypto exchange traders in the country can no longer use their financial accounts to transact on crypto exchange platforms.

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