Nigerians all over the country have lambasted the Central Bank of Nigeria for allegedly banning financial institutions from processing cryptocurrencies. In a letter addressed to all deposit money banks, and financial institutions, the CBN stated that “dealing in cryptocurrencies…is prohibited”. The CBN also stated that any breach in the directive will attract a severe regulatory penalty.
The letter reads:
“Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies 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 cryptocurrency exchanges within tier 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 letter was signed by Bello Hassan, Director of Banking Supervision.
Twitter users have lambasted the CBN for the alleged ‘ban’ and have criticised the rationale behind the decision.
