Banks have warned customers to avoid using their accounts for cryptocurrency transactions despite the Security and Exchange Commission’s (SEC) latest regulation on cryptocurrency which essentially formalized cryptocurrency as an asset class in Nigeria.
In an email to one of the bank’s customers, it warned against using their bank accounts for cryptocurrency transactions as the accounts will be closed if they are caught.
The email stated, “Further to its earlier communication that dealing in Cryptocurrencies or facilitating payments for Cryptocurrency exchanges is prohibited, the Central Bank of Nigeria (CBN) has in its letter with reference number BSD/DIR/GEN/LAB/14/001, dated February 5, 2021, directed that all banks, non-bank financial institutions and other financial institutions should identify persons and/or entities transacting in or operating Cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.
“In line with the CBN directive, kindly note that any account identified as transacting in or operating Cryptocurrency exchanges within our system will be closed immediately.”
Earlier this year, the CBN fined six banks, a total of N1.315 billion for failing to comply with regulations prohibiting customers from transacting in cryptocurrencies.
However, the SEC recently released a regulatory framework around the crypto industry, spelling out the requirements and rules for governing and participating in the space.
