CBN Defends Action On Cryptocurrencies, Says It Breed Illegal Activities, Raise Risks

The Central Bank of Nigeria (CBN) has revealed that it banned cryptocurrency-related transactions in the country due to the digital currency being used for money laundering and terrorism.

Recall that on Friday, the apex bank ordered banks in the country to shut down the accounts of cryptocurrency traders .

The apex bank made this known in a statement on Sunday by Osita Nwanisobi, Acting Director, Corporate Communications.

According to the statement, the ban on such transactions will not have any negative impact on fintechs.

The CBN stated, “The recent regulatory directive became necessary to protect the financial system and the generality of Nigerians (including the youth population) from the risks inherent in crypto assets transactions, which have escalated in recent times, with dire consequences for the integrity of the financial system and financial stability.

“Due to the fact that cryptocurrencies are largely speculative, anonymous and untraceable they are increasingly being used for money laundering, terrorism financing and other criminal activities.

“Small retail and unsophisticated investors also face high probability of loss due to the high volatility of the investments in recent times.

“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators.”