The Central Bank of Nigeria (CBN) says it would continue to do all within its regulatory powers to educate Nigerians to desist from use of cryptocurrencies, despite growing criticism.
In a statement, the Apex Bank said it is determined to protect the country’s financial system from activities of “fraudsters and speculators”.
Its directive to banks to close accounts of persons or entities involved in cryptocurrency transactions has been criticised, with former vice-president, Atiku Abubakar, asking the bank to rescind the decision.
Listing various reasons for its action, the Central Bank of Nigeria said not only are cryptocurrencies issued by unregulated and unlicensed entities, the patrons and users value “anonymity, obscurity, and concealment” and there are risks of “loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities”.
China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Kyrgyzstan, Ecuador, Saudi Arabia, Jordan, Iran, Bangladesh, Nepal and Cambodia have all placed certain level of restrictions on financial institutions facilitating cryptocurrency transactions, the bank said in the statement signed by Osita Nwanisobi, its acting director of corporate communications.
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