Nigeria's Central Bank to ban crypto accounts

Monday 8 February 2021 10:39 CET | News

The Central Bank of Nigeria (CBN) has ordered all banks to close any accounts transacting with cryptocurrencies.

The CBN said it was reminding regulated banking institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited. As CoinDesk shows, all banks should identify persons and/or entities transacting with cryptocurrency or operating crypto exchanges on their platforms and ensure that such accounts are closed immediately.

Any breaches of the order would face ‘severe regulatory sanctions,’ the order states. Nigeria has a history of ‘fighting against’ cryptocurrency. For several years, the CBN has warned residents and financial institutions that cryptocurrency investments are unprotected, and investors face risks such as exchange bankruptcy and market volatility.

The CBN directive comes just months after protesters in Nigeria used bitcoin to raise funds after authorities reportedly shuttered bank accounts associated with the movement.

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Keywords: Nigeria, crypto, Bitcoin, cryptocurrency, banking, crypto payment, CBN, exchange bankruptcy
Categories: DeFi & Crypto & Web3
Countries: Nigeria
This article is part of category

DeFi & Crypto & Web3