From Uche Usim, Abuja
Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs) and Other Financial Institutions (OFls) have been ordered by the Central Bank of Nigeria (CBN) to immediately close all accounts currently used for crypto currency services.
The apex bank gave the directive in a circular released Friday with reference number; BSD/DIR/GEN/LAB/14/001, jointly signed by Bello Hassan, Director of Banking Supervision and Musa Jimoh, Director of Payment System Management Department.
It advised financial institutions to identify persons and/or entities transacting in or operating crypto currency exchanges within their systems and ensure that such accounts are closed immediately. While noting that the order takes immediate effect, the circular warned of severe regulatory sanctions against any defaulting financial institution.
The CBN, in the past “cautioned Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFls) and members of the public on the risk associated with transactions in crypto currency”.
However, the development has attracted varied reactions with many social media buffs insisting that the directive will hurt Nigerian companies and foreign investments alike”.
They noted that “investors from mostly the United States have, in spite of the risks involved in investing in Nigeria, invested in Nigerian fintech companies that this letter clearly targets”.
Analysts also reckon that the decision of CBN to tow this path of action shows it is not ready with regulations to moderate the crypto currency market.