Cryptocurrencies: CBN clarifies it only ‘prohibits’ transactions in banking sector

*The Central Bank of Nigeria has restated that it neither places restrictions on the use of cryptocurrencies, nor discourages people from trading in them in the country

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN), again, has clarified that it has not banned cryptocurrency accounts and transactions in the country.

It was learnt as the major crypto stakeholders request a hearing to discuss cryptocurrency regulation issues in Nigeria, the Bankers’ Bank stated that it did not ban “Nigerians from buying, trading, or selling crypto.”

Adamu Lamtek, Deputy Governor of CBN, was quoted to have affirmed this position at the 30th Seminar for the Finance Correspondents and Business Editors in the country.

The Bank said: “The CBN did not place restrictions from the use of cryptocurrencies, and we are not discouraging people from trading in it.

“What we have just done was to prohibit transactions on cryptocurrencies in the banking sector” of the economy.

ConsumerConnect had reported that the Central Bank of Nigeria (CBN) in a circular dated February 5, 2021, had directed Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Non-Bank Financial Institutions (NBFIs) against having any transactions in crypto or facilitating payments for crypto exchanges.

Bello Hassan, Director of Banking Supervision, and Musa Jimoh, Director of Payments System Management Department of the CBN, who jointly signed the letter stated: “The CBN circular of January 12, 2017 Ref FPR/DIR/GEN/CIR/06/010 which cautioned DMBs, NBFIs and OFIs and members of the public on the risks associated with transactions in crypto currency refers.”

The CBN noted that “breaches of this directive will attract severe regulatory sanctions.

“Further to other regulatory directive on the subject, the bank hereby wishes to remind regulated institutions that dealing in crypto currencies or facilitating payment from cryptocurrency exchanges is prohibited.”