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IMF backs CBN on cryptocurrency transactions ban

The CBN recently issued a circular to all banks stating that all banks must close the accounts that deal with cryptocurrency

The International Monetary Fund (IMF) has directed the Central Bank of Nigeria (CBN) and other global regulators to be cautious against cryptocurrency transactions. The CBN recently issued a circular to all banks stating that all banks must close the accounts that deal with cryptocurrency or facilitate cryptocurrency payments, with immediate effect.

Furthermore, the CBN has also directed banks not to deal with individuals and entities running such accounts. It is reported that the banks which don’t follow the regulations will face sanctions. The CBN has cautioned these entities against a risk associated with cryptocurrency transactions: deposit money banks (DMBs), non-bank financial institutions (NBFIs) and other financial institutions (OFIs).

The IMF Resident Representative for Nigeria, Mr. Ari Aisen, told the media, “A lot has been changing regarding the payment system, saying that, the issue with some of these cryptocurrencies is that perhaps some care should be taken about their activities and the use of cryptocurrencies. Not only in Nigeria have this concern about what kind of activities that cryptocurrencies might be supporting and how best to monitor those activities. Some of them are involved in illegal activities; some may be related to money laundering, even drugs and other initiatives and it is natural that the authorities would be extremely concerned about how best to supervise, improve and supervise the use of cryptocurrencies.”

It is reported that developing robust fundamentals is expected to bolster growth and investments in Nigeria. Nigeria seeks to become a developed economy.

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