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Nigerian Central Bank Says Its Ban on Crypto Accounts Is Nothing New

In Sunday’s statement, the CBN said Friday’s letter was only a reminder that cryptocurrencies were not legal tender in Nigeria and was reiterating a position the bank has held since 2017, not imposing new restrictions on the industry. 

“It is important to clarify that the CBN circular of Feb. 5, 2021, did not place any new restrictions on cryptocurrencies, given that all banks in the country had earlier been forbidden, through CBN’s circular dated Jan. 12, 2017, not to use, hold, trade and/or transact in cryptocurrencies,” the statement said. 

It is stated that cryptocurrencies are issued by “unregulated and unlicensed” entities and that crypto assets are volatile speculative assets that can be a danger to Nigerian users. 

“The very name and nature of ‘cryptocurrencies’ suggests that its patrons and users value anonymity, obscurity, and concealment,” the statement said. 

In the letter, the CBN assured that this stance will not inhibit the progress of the fintech sector in the country or its payments ecosystems. The directive became necessary, it said, to protect Nigerians, including its youths from the risks inherent in crypto assets transactions.

“Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable they are increasingly being used for money laundering, terrorism financing, and other criminal activities,” the statement said.

Content created and supplied by: litech (via Opera News )

CBN Nigerian Central Bank

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