By Farid Suleiman
Bloomberg reports that the Central Bank of Nigeria (CBN) has penalized three banks over non-compliance with its cryptocurrency directive. The affected banks are Stanbic IBTC Bank, Access Bank Plc and United Bank for Africa.
In a circular dated January 5, 2021, the apex bank had issued a directive to Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), and other financial institutions (OFIs) to identify and suspend all accounts of individuals and entities used for cryptocurrency transaction on their system.
“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited,” the circular reads.
“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”
The affected banks were fined a combined sum of ₦800million. Stanbic IBTC Bank, United Bank of Africa and Access Bank were fined 200million, 100million, and N500million, respectively.
