CBN Warns Banks - Avoid Bitcoin or Other Virtual Currencies

The Central Bank Of Nigeria, CBN, has issued an important warning to the Banks in Nigeria and other Financial Institution not to transact in digital or crypto currencies.

 

Apex Bank listed some of the digital currencies which includes; bitcoin,litecoin,onecoin,dogecoin,monero,ripples.

CBN during the week lectured Nigerians on the dangers of trading or transacting with such currencies and also warned DMBs and other financial institutions that virtual currencies are not accepted in Nigeria.

They went further to issue a warning that any individual or institution dealing or trading with virtual currencies are doing so at their own risk.

A document titled,  “Circular to banks and other financial institutions on virtual currency operations in Nigeria,” was Mr. Kevin Amugo,  Director, Financial Policy and Regulation, CBN.

It reads, “The attention of the banks and other 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: Ensure that you do not use, hold, trade and/transact in any way in virtual currencies; and 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 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.

“The CBN reiterates that the Virtual Currencies such as bitcoin, ripples, monero, litecoin, dogecoin, onecoin, etc and similar products are not legal tenders in Nigeria, thus any bank or institution that transacts in such businesses does so as its own risk.”