Thursday, September 23, 2021

CBN warns Nigerians on investment in crypto currencies

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Jaafar Jaafar
Jaafar Jaafar is a graduate of Mass Communication from Bayero University, Kano. He was a reporter at Daily Trust, an assistant editor at Premium Times and now the editor-in-chief of Daily Nigerian.
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The Central Bank of Nigeria, CBN, has again cautioned Nigerians to be wary of investments in crypto currency as they are virtual currencies that are not legal tender in Nigeria.

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The bank’s acting director of corporate communications, Isaac Okoroafor, in a statement on Wednesday in Abuja, said crypto currencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, and Exchanges such as NairaEx were not licensed or regulated by the CBN.

Mr Okoroafor said 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.

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

The News Agency of Nigeria reports that the CBN had on January 12, 2017, issued a circular to banks and other financial institutions on virtual currency operations in Nigeria.

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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.

Mr 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.

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