September 24, 2021

UCJ-UNILORIN

Official Website Of Union Of Campus Journalits, University of Ilorin.

Disquiets, grunts amongst Nigerians as CBN places ban on cryptos

2 min read

By Muhammed Bello

Palpable displeasures have trailed the decision of the Nigerian apex bank to place a complete ban on transactions in cryptocurrencies in the country. The Central Bank of Nigeria (CBN) has on Friday in a circular BSD/DIR/GEN/LAB/14/001 announced the decision.

The apex bank gave the order to all financial institutions in the country warning that breaches to its directives will attract “severe sanctions”.

This new directives have however caused palpable disquiet amongst those with commercial interest in the new currency in the country.

This new directive is sequel to the earlier cautions made by the regulating body of all financial institution in the country. Earlier in January, in a circular EPR/DIR/GEN/CIR/06/010, the apex body had cautioned commercial banks, alongside other financial institutions, and the general public to beware of the danger involved in the trading in the cryptocurrencies.

Furtherance to that, the institution in the new circular prohibits regulated institutions from facilitating payments in crypto currency.

“Further to earlier regulatory directives, on the subject, the bank hereby wishes to remind regulated institutions that dealing in crypto currencies 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 crypto currency exchange, within their systems and ensure that such accounts are closed immediately.”, the circular reads in part.

CBN further promised to punish whoever that goes against the information and other the information to be out.

“Please note that breaches of these directives will attract severe regulatory sanctions”, It warned.

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