Business - News - February 5, 2021

Again, CBN warns financial institutions against crypto currency

The Central Bank of Nigeria (CBN) again on Friday warned commercial banks and other financial institutions to desist from dealing in crypto currencies.
The apex bank in a statement on its website quoted the CBN Director of Banking Supervision, Bello Hassan, and Musa Jimoh, Director of Payments System Management, described the currency as illegal.
Titled “Letter to All Deposit Money Banks, Non-Bank Financial Institutions and Other Financial Institutions” the letter reads:
“The Central Bank of Nigeria’s (CBN) circular of January 12, 2017 Ref: FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Banks (DMBs) Non-Bank Financial Institutions (NBFIs).
he It said that the warning was in furtherance of a 2017 circular which cautioned Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and members of the public on the risks associated with transactions 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 payment of Crypto currency exchange is prohibited.
“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons transacting in, or operating Crypto currency exchange within their systems and ensure that such accounts are closed immediately.
“Please note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect,” the CBN said. (NAN)

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