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    CBN warns bank not to transact in Bitcoin nd other virtual currencies


    The Central Bank of Nigeria has gave it's warning to other Banks in Nigeria not to transact in crypto and digital or virtual currencies.

    CBN made mention of some crypto currencies which include: Bitcoin, monero, ripples, litecoin, onecoin and dogecion.


    The CBN lectured Nigerian about the danger of transacting in such virtual currencies.

    In a circular dated January 12, 2017, CBN warned the DMBs and other financial bodies that the digital currencies were not accepted in Nigeria.
    It further warned that any institution or individual dealing in such currencies was doing so at their own risk.
    The document titled, “Circular to banks and other financial institutions on virtual currency operations in Nigeria,” was signed by the Director, Financial Policy and Regulation, CBN, Mr. Kevin Amugo.
    It reads, “The attention of the banks and other financial institutions is hereby drawn to the above risks and you are required to take the following actions pending substantive regulation or decision by the CBN: Ensure that you do not use, hold, trade and/transact in any way in virtual currencies; and ensure that existing customers that are virtual currency exchangers have effective AML/CFT controls that enable them to comply with customer identification, verification and transaction monitoring requirements.
    “Where banks or other financial institutions are not satisfied with controls put in place by the virtual currency exchangers/customers, the relationship should be discontinued immediately; and any suspicious transactions by these customers should immediately be reported to the Nigerian Financial Intelligence Unit.
    “The CBN reiterates that the VCs such as bitcoin, ripples, monero, litecoin, dogecoin, onecoin, etc and similar products are not legal tenders in Nigeria, thus any bank or institution that transacts in such businesses does so as its own risk.”

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