Once Again, CBN Warns Against Cryptocurrencies

• Once Again, CBN Warns Against Cryptocurrencies

The Central Bank of Nigeria on Wednesday warned against investing in unregulated digital currencies, stating that cryptocurrencies were not legal tender in the country.

The bank in a statement issued in Abuja stated that virtual currencies such as Bitcoin, Ethereum, Ripples etc, and exchanges such as NairaEx were not regulated or licensed by the institution. Meaning, investments in any kind of cryptocurrency in Nigeria are not protected by the law.

Therefore, the bank warned Nigerians against investing in cryptocurrencies as doing so would leave them vulnerable to various unregulated crypto schemes.

This was a follow up to January 12, 2017, circular issued by the CBN to commercial banks and other financial institutions on cryptocurrency operation in Nigeria.

In the circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, the apex bank noted that cryptocurrencies were traded on exchange platforms that were unregulated, hence, transactions in digital currencies were untraceable and dangerous as they can be used by criminals to finance terrorism and money laundering.