Central Bank Of Nigeria Prohibits Banks For Operating Cryptocurrency Exchanges

The Central Bank of Nigeria has ordered banks that transact and operates on Cryptocurrency Accounts to close accounts with immediate effect. The Central bank directive warns of severe regulatory sanctions on Banks that makes transactions on cryptocurrency exchanges.That, failure to comply with the directive will result in severe regulatory sanctions, according to acircularsent to financial institutions on Friday and published on the central bank’s website.

Central bank also ordered deposit-taking banks and other financial institutions to immediately close accounts transacting in or operating cryptocurrency exchanges, saying such deals are forbidden in the banking system.

The Nigerian Securities and Exchange Commission said in September it would regulate trade in digital currencies to provide protection for investors and to ensure that transactions are transparent.

Why Central Bank (CBN) Stops The Operation of Cryptocurrency

The CBN comes with this regulations after protests in October against the police’s Special Anti-Robbery Squad, popularly known as SARS, which saw organizers accepting Bitcoins for funding after the government allegedly blocked local payment platforms for collecting donations.