Virtual currencies: CBN cautions Nigerians

The Central Bank of Nigeria (CBN) has cautioned Nigerians to be
wary of investments in crypto currency, stressing that virtual
currencies are not legal tender in Nigeria.

The CBN’s warning is coming barely one week after the Board of
the International Organisation of Securities Commissions (IOSCO),
has cautioned against the haste to draw up regulation on the
activities of crypto currencies, noting that it will instead confer
undue legitimacy which may serve to deceive the general public into
believing that there is regulatory faith in the products

The apex bank in a release on Wednesday reiterated that crypto
currencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin,
Onecoin, etc and exchanges such as NairaEx were not licensed or
regulated by the CBN.

The statement which was signed by the bank’s Acting Director in
charge of Corporate Communications, Isaac Okorafor, emphasized that
dealers and investors in any kind of crypto currency in Nigeria
were not protected by law, thus may be unable to seek legal redress
in event of failure of the exchangers or collapse of the
business.

The CBN therefore warned Nigerians against investing in crypto
currency as doing so would be at their own risk.

It will be recalled that the CBN on January 12, 2017, issued a
circular to banks and other financial institutions on virtual
currency operations in Nigeria.

In the 2017 circular signed by the Director, Financial Policy
and Regulation Department, Kevin Amugo, the CBN had among other
issues noted that virtual currencies were traded in exchange
platforms that are unregulated, all over the world.

It further noted that transactions in virtual currencies were
largely untraceable and anonymous thereby making them susceptible
to abuse by criminals, in money laundering and financing of
terrorism.

The Central Bank of Nigeria (CBN) has cautioned Nigerians to be
wary of investments in crypto currency, stressing that virtual
currencies are not legal tender in Nigeria.

The CBN’s warning is coming barely one week after the Board of
the International Organisation of Securities Commissions (IOSCO),
has cautioned against the haste to draw up regulation on the
activities of crypto currencies, noting that it will instead confer
undue legitimacy which may serve to deceive the general public into
believing that there is regulatory faith in the products

The apex bank in a release on Wednesday reiterated that crypto
currencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin,
Onecoin, etc and exchanges such as NairaEx were not licensed or
regulated by the CBN.

The statement which was signed by the bank’s Acting Director in
charge of Corporate Communications, Isaac Okorafor, emphasized that
dealers and investors in any kind of crypto currency in Nigeria
were not protected by law, thus may be unable to seek legal redress
in event of failure of the exchangers or collapse of the
business.

The CBN therefore warned Nigerians against investing in crypto
currency as doing so would be at their own risk.

It will be recalled that the CBN on January 12, 2017, issued a
circular to banks and other financial institutions on virtual
currency operations in Nigeria.

In the 2017 circular signed by the Director, Financial Policy
and Regulation Department, Kevin Amugo, the CBN had among other
issues noted that virtual currencies were traded in exchange
platforms that are unregulated, all over the world.

It further noted that transactions in virtual currencies were
largely untraceable and anonymous thereby making them susceptible
to abuse by criminals, in money laundering and financing of
terrorism.