CBN Bans Cryptocurrencies In Nigeria

The Central Bank of Nigeria (CBN) has banned Cryptocurrency exchange, trading or dealing in Nigeria. The apex bank, on February 5, released an official statement regarding the Crypto ban.

Nyscinfo.com learnt that the statement prohibiting financial institutions within Nigeria from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchange was signed by the CBN Director of Banking Supervision, Bello Hassan and the Director of Payments System Management Department Musa I. Jomoh.

Below is the official statement from CBN as obtained by Nyscinfo.com:

CBN Bans Cryptocurrency Exchange In NigeriaThis implies that trading of cryptocurrencies in Nigeria is now unlawful. All Deposit Money Banks, Non-Bank Financial Institutions and other Financial Institutions have been instructed to identify persons and/or entities dealing in or operating cryptocurrency exchange within their systems and ensure that such accounts are closed immediately. The statement added that “breaches of this directive will attract severe regulatory sanctions.”

Following the #EndSARS protest, the use of Cryptocurrencies, especially Bitcoin skyrocketed in Nigeria. During the protest, bank accounts of activists like the Feminist Coalition were blocked and other payment platforms for freelancers were banned. This made transactions difficult, making many youths to rely on bitcoins and other cryptocurrencies.

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Updated: February 6, 2021 — 11:26 am

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