Nigeria’s commercial banks are prohibited from providing account services to cryptocurrency exchanges. Nigeria’s central bank had taken this decision while cryptocurrency adoption growth increasing in Nigeria.
The Central Bank of Nigeria has issued a circular which contains the prohibition and mentioning the previous warnings from the bank about risks that can be occurred with digital currencies, also known as cryptocurrencies.
However, here’s the containment of the 2017 issued warning.
The warning contains as following,
1. Ensure that don’t use, trade and hold or make any transactions in any way with digital currencies,
2. Ensure that existing customers that are effective AML/CFT controls that enable them to comply with KYC verification and other transaction monitoring requirements,
3. Whenever banks or other financial institutions are not in satisfaction with the controls put by cryptocurrency exchanges, the current relationship should be closed immediately,
4. And any suspicious transactions by these customers should immediately be reported to the Nigerian Financial Intelligence Unit.
However, this is still a warning. But in 2021 issued circular CBN went rogue and threatened commercial banks or any financial institution, if they fail to comply with the following circular, the CBN will take stiff decisions against those banks and financial institutions.
If we look at google trends, it shows how cryptocurrency mass adoption was happening in past years in Nigeria. It continues to increase. The thing is, this ban for commercial banks and other financial institutions is at the peak of user interest over time.