Nigeria bans the use of cryptocurrencies
- 07 Feb 2021
Gulf Today Report
The central bank of Nigeria released a statement ordering all banks and financial institutions to close accounts that make use of cryptocurrencies.
Nigeria, Africa’s largest economy has grown a huge market for cryptocurrency trade, however, the central bank claims it is not regulated or an accepted legal tender.
Cryptocurrencies serve as a safe haven in the petroleum-reliant economy where the currency price fluctuates often.
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According to the statement, all banks and financial institutions should identify persons and/or entities involved in cryptocurrency exchanges and close their accounts immediately.
"Breaches of this directive will attract severe regulatory sanctions," it said.
The central bank has warned since 2017 that digital currencies are not authorised and that traders and investors in them were at risk as they were not protected by law.
