8th February 2021
The CBN Letter On Cryptocurrency: Your FAQs Answered
On 5 February 2021, the Central Bank of Nigeria (CBN) issued a Reminder to banks, non-bank financial institutions and financial institutions that dealing in cryptocurrencies or facilitating cryptocurrency exchanges was prohibited, ordering an immediate stop to such transactions.
The apex bank further directed the immediate closure of bank accounts belonging to persons and/or entities transacting in cryptocurrency or operating cryptocurrency exchanges.
In response to heated and adverse market reactions, the CBN published a press release dated 7 February 2021 to justify the rationale behind its earlier regulatory directive on cryptocurrencies, reiterating that cryptocurrencies are not legal tender in Nigeria.
In our FinTech Update, we have set out what we consider to be recurring questions and have provided brief responses based on our understanding of the Letter and the regulatory landscape in Nigeria.
Related posts
18 March 2024
SEC Proposes New Amendments to its Rules on Issuance, Offering Platforms and Custody of Digital Assets
On 15th March 2024, the Securities and Exchange Commission (SEC) in Nigeria proposed amendments to its rules on digital assets including the introduction of additional requirements for virtual asset service providers.
7 March 2024
