The Central Bank has ordered banks and other financial institutions to identify persons and entities operating cryptocurrency exchanges and close all such accounts .
It stated that dealing with cryptocurrencies and facilitating payments through them are illegal in the country .
This was disclosed in a circular titled ‘ Letter to all Deposit Money Banks , non -bank financial institutions and other financial institutions ’ Friday .
The circular was signed by the Director of Banking Supervision , Bello Hassan ; and the Director of Payments System Management Department .
It read, “ The Central Bank of Nigeria circular of January 12 , 2017 ref FPR /DIR / GEN/ CIR/ 06 / 010 which cautioned the Deposit Money Banks , non- bank financial institutions , other financial institutions and members of the public on the risk associated with transactions in cryptocurrency refers .
“ Further to earlier regulatory directives on the subject , the bank hereby wishes to remind regulated institutions that dealing with 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 their systems and ensure that such accounts are closed immediately .
“ Please , note that breaches of this directive will attract severe regulatory sanctions .
“ The letter takes immediate effect. ”
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