Stella Dimoko CBN Sends Circular To Banks And Other Financial Institutions On Virtual Currency Operations In Nigeria.


Advertisement - Mobile In-Article

Wednesday, January 18, 2017

CBN Sends Circular To Banks And Other Financial Institutions On Virtual Currency Operations In Nigeria.

The Central Bank of Nigeria, CBN, Tuesday, banned banks from all transactions in bitcoin and other virtual currencies.

A circular signed by the apex bank’s director, financial policy and ‎regulation department, Kelvin Amugo, stated that the move was
necessitated by money laundering and terrorism financing risks inherent in operations of virtual currencies.

“The emergence of Virtual Currencies (VCs) has attracted investments in payments infrastructure that provides new methods of transmitting value over the internet.

“Transactions in VCs are largely untraceable and anonymous making them susceptible to abuse by criminals, especially in money laundering and financing of terrorism.

“VCs are traded in exchange platforms that are unregulated, all over the world. Consumers may, therefore, lose their money without any
legal redress in the event these exchanges collapse or close business.

“The development of VCs Payment Products and Services (VCPPS) and their interactions with other New Payment Products and Services (NPPS), give rise to the need for guidance to protect the integrity of
the Nigerian financial system. There is, therefore, the need to address the Money Laundering/Terrorism Financing risks associated with VC exchanges and any other type of institutions that act as nodes,
where convertible VC activities intersect with the regulated fiat currency financial system.

“The attention of banks and other reporting financial institutions is hereby drawn to the above risks and you are required
to take the following actions pending substantive regulation or decision by the CBN.”

The Central Bank therefore advised banks to ensure that they do not use, hold, and
transact in virtual currencies. The apex bank also warned the banks to ensure that existing customers that are virtual currency exchangers have effective AML/CFT controls that enable them to comply with customer identification, verification and transaction monitoring requirements.

“Where banks or other financial institutions are not satisfied with the controls put in place by the virtual currency exchangers/customers, the relationship should be discontinued
immediately; and any suspicious transactions by these customers should immediately be reported to the Nigerian Financial Intelligence Unit (NFIU),” the CBN said.

The CBN stressed that virtual currencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecion, Onecoin and similar products are not legal tenders in Nigeria, thus any bank or institution that transacts in
such business does so at its own risk.

The apex bank’s directive is coming after the Securities and Exchange Commission, SEC, issued a warning against virtual currencies.

“Given that these instruments and the persons, companies or entities
that promote them have neither been authorized, nor any
guidelines/regulations developed for them by any of the regulatory
authorities in Nigeria, there is no protection available to users or investors in these virtual currencies from financial losses if the virtual currencies fail or the companies promoting them go out of business,” the commission had said.

From Premiumtimes


  1. Hmm
    some bvs has bitcoin, whqt will you guys do?

  2. CBN is more concerned about security instead of them to tackle the devaluation of the Naira. Shows more about their priorities
    We have more problems in the country than customers collecting virtual currencies

  3. Stella edit ur heading

  4. Those who have ears una hear! Bitcoin,gold lol


  6. All i can think of is Reuben Abati write up yesterday n this biscoin thing. Then i just remember that this administration is trying to fostrate the lifes of Nigeria. Exoecially now that MMM is paying in Biscoin.

  7. Ok seen! They won't create jobs and still they always find a way to block ppl from surviving.

  8. our Govt has misplaced priorities.
    they re doing all these bcos MMM has asked ppl to now use Bitcoin for their services.
    its like you banning internet services because some Nigerians are using it for yahoo yahoo.

  9. God please let these people not spoil the hustles of your childeren o,.

    Since late last year, my girl has been making very well over 100k every single week by trading bitcoin.

    people are working hard and trying to survive by themselves, mostly in this difficult times

    The good things is your capital can not be lost since you are buying a currency, so you always have your funds. it never leaves you.

  10. This government is synonymous with hardship. People are getting their groove back by trading these coins and here they are frustrating it. It's the same mmm excuse "NOT REGISTERED WITH SEC" but I keep asking, who SEC help?
    Banks steal from a common man more than armed robbers in a year yet Sec won't do anything.
    God dey!

  11. But stella my sis told me few weeks ago that people now trade houses in Abuja using bitcoin. That it's that serious. So why all these bans? I'm not into Ponzi schemes or VCs but aren't the banks more focused on getting their own share of profit??


Disclaimer: Comments And Opinions On Any Part Of This Website Are Opinions Of The Writers Or Anonymous Persons And They Do Not Represent The Opinions Of

Pictures and culled stories posted on this site will be given due credit and is not the fault of if website culled from misrepresents source of story.

If you have a complaint or a story,Please Contact Via
Mobile Phone +4915210329280