Central Bank of Nigeria has Launched an Investigation into Financial Institutions who offered banking services to Crypto Businesses

By: Dickson Arinze

February 10, 2021 8:11 AM

Central Bank of Nigeria (CBN) on Monday launched an investigation on the country banks and other financial institutions who might have provided banking services to crypto merchants.

In the recent circular by CBN which clearly prohibit Nigerian Banks from offering it's services to unregulated businesses. cryptocurrency trading is still unregulated in the country currently.

At press time, according to a CBN Executive who said:

"banks are not permitted to extend its services to unregulated businesses and crypto trading is regarded as one in the country"

However, examiners is being sent out to the banks to check records in order to find any defaulters who may have breached the regulation which restrict banks from giving unregulated Services in the country.

The CBN, has constantly warned about cryptocurrencies and the risk associated with it. Bitcoin has been reported to be used for money laundering, financing terrorists and other criminal activities.

Meanwhile, despite the backlash CBN received after the ban on cryptocurrencies in Nigeria, It has promised to continue to enlighten Nigerians of the threats associated with digital currencies.

Central Bank of Nigeria (CBN) said:
“The fact that digital currencies are issued by unregulated businesses in Nigeria, their use in the country goes against the mandates of CBN, as stated in the Central Bank of Nigeria (2007) Act, as the issuer of legal tender in Nigeria.”