Cryptocurrencies: CBN Warns Nigerians


The Central Bank of Nigeria (CBN) has again cautioned Nigerians to be wary of investments in cryptocurrency as they are virtual currencies that are not legal tender in Nigeria.

The Bank’s Acting Director, Corporate Communications, Mr Isaac Okoroafor, in a statement on Wednesday in Abuja, said cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, and Exchanges such as NairaEx were not licensed or regulated by the CBN.

Okoroafor said that dealers and investors in any kind of cryptocurrency in Nigeria were not protected by law, this may be unable to seek legal redress in event of failure of the exchangers or collapse of the business.

The CBN further warned Nigerians against investing in cryptocurrencies as doing so would be at their own risk.

CBN had on Jan. 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 were not regulated all over the world.

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