Ben Bruce, other Nigerians react as CBN bans crypto trading

The former senator representing Bayelsa east, Senator Ben Murray-Bruce and other Nigerians have reacted to the purported ban of cryptocurrency trading by the Central Bank of Nigeria (CBN). In a circular dated 5th February 2021, the Central Bank of Nigeria notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto and […]

Ben Bruce, other Nigerians react as CBN bans crypto trading

The former senator representing Bayelsa east, Senator Ben Murray-Bruce and other Nigerians have reacted to the purported ban of cryptocurrency trading by the Central Bank of Nigeria (CBN).

In a circular dated 5th February 2021, the Central Bank of Nigeria notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto and other digital assets.

The apex bank also directed financial institutions to close the accounts of persons or entities transacting in or operating cryptocurrency exchanges.

The Apex bank further warned the Nigerian Financial Stakeholders that any breach of this directive will attract serious regulatory sanctions.

“The Central of Bank of Nigeria’s (CBN) circular of January 12, 2017 ref FPR1DIR/GEN/C1R106/010 which cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members of the pubic 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 in 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. This letter is with immediate effect.”

However, many Nigerian’s including the former lawmaker condemned the move saying it was ill-informed.

 

https://twitter.com/ObongRoviel/status/1357692066575376384

 

It would be recalled that the CBN had in 2018 declared that cryptocurrencies are not a legal tender in Nigeria.

The apex bank said in the circular that “cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, etc and Exchanges such as NairaEx are not licensed or regulated by the CBN.”

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