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The Central Bank of Nigeria (CBN) has commenced the seizure of funds and closure of accounts with history of cryptocurrency trades in the country, TheNewsGuru.com, TNG can authoritatively report.
TNG recalls that the apex bank last week Friday ordered all banks to close accounts of anyone who transacts in cryptocurrency.
However TNG observed that the CBN directive does not include forfeiture of funds in the accounts.
The directive was contained in a circular to banks and other financial institutions, signed on Friday by the Director of Banking Supervision, Bello Hassan.
“Accordingly, all DMB’s NBFI’s or OFI’s are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.
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“Please, note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect,” the CBN statement read in part.
TNG reports that a cryptocurrency is a virtual or digital currency that appreciates or depreciates on the whims of market forces.
A bank customer who trades in cryptocurrency told TNG that he couldn’t access his account and funds in one of the new generation banks since Tuesday.
‘I got to the bank on Tuesday to move my money to another bank but was told the CBN has frozen the money in account. As it stands now, I can’t open another account with the bank nor operate the old account and my funds are frozen,’ he said.
Another bank customer said he was denied of his funds in an account he never used for cryptocurrency trading before.
“I use a separate account for trading and keeping funds. When I got to the bank I use for trading, they said the account was already closed. I went to the bank where I keep funds, those ones said CBN has taken over the funds and accounts. Isn’t this madness?’, he quizzed.
Confirming the development, a bank official who does not want to be named said the CBN directives to banks also affects accounts that have history of cryptocurrency trading.
“Accounts with history of cryptocurrency trading that have now stopped are also affected. Its not the bank’s policy but the CBN’s, and it has to be obeyed to the letter,’ he said.
Some cryptocurrency accounts still functional
Findings by TNG revealed that not all the cryptocurrency trading accounts have been closed. TNG gathered from reliable industry source that only account holders (corporate and individual) that indicated dealing in cryptocurrency trading while filling the account opening forms are closed for now.
‘Another reason your account gets blocked is when someone makes transfer and put crypto or any crypto name in the comment. It will get shut almost immediately,’ the source explained.
Meanwhile, TNG also gathered that some commercial banks are not yet following the CBN directives. Some customers said as at yesterday (Wednesday) they still traded in cryptocurrency from their accounts.
Efforts by TNG to reach officials of the apex bank for comments was not successful as at press time.