The Central Bank of Nigeria has prohibited cryptocurrency and directed banks and other financial institutions to close accounts operating in the cryptocurrency systems.
The apex bank issued this directive in a circular sent to financial institutions on Friday morning.
It cited a 2017 circular where it had cautioned the financial institutions on the risk of transactions in the cryptocurrency market, reminding regulated institutions that dealing in crypto currencies or facilitating payments for cryptocurrency exchanges is prohibited.
The financial institutions were then directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately or risk sanctions.
The cryptocurrency market in Nigeria has been acquiring more users in recent times and is the second largest cryptocurrency market in the world.
This move however, has caused uneasiness among Nigerian Cryptocurrency dealers who fear they may lose money.
It also places Nigeria with countries like Bolivia, Iran, India, Bangladesh who have banned cryptocurrency over its threat to economy and usage as a payment platform to carry out shady transactions.
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