Bank Account Closure: Banks warn Customers on Cryptocurrency transactions

Nigerian Banks have commenced implementation of the Federal Government's directives on the prohibition of Cryptocurency related transactions or exchange in Nigeria.  

First Bank in a notification to it's customers titled "Mandatory closure of account", Friday, states:

"Further to its earlier directives that dealing in Cryptocurrencies or facilitating payments for Cryptocurrency exchanges is prohibited, the Central Bank of Nigeria (CBN) has written the letter:BSD/DIR/GEN/LAB/14/001 dated 5 February 2021, to direct that all banks, non-bank financial institutions and other financial institutions should identify persons and/or entities transacting in or operating Cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.

"In line with the Central Bank of Nigeria directives, please be informed that any account identified as transacting in or operating Cryptocurrency exchanges within our system will be closed accordingly.

We assure you of our continued support as we thank you for banking with us # FirstBankCares  #EnablingYou"

The Central Bank of Nigeria (CBN) has within the month placed a ban on transacting in Cryptocurencies or facilitating cryptocurrency exchange in Nigeria stating that Transactions in cryptocurrencies are largely speculative, volatile and should be discouraged.

Mr Osita Nwanisobi, Acting Director of Communications, CBN countering the reactions of Nigerians who condemned the decision of the apex bank explained that  "evidence now suggests that some cryptocurrencies have become more widely used as speculative assets rather than as means of payment, thus explaining the significant volatility and variability in their prices."

Nwanisobi in his statement captured in The Guardian https://t.guardian.ng/news/nigeria/why-we-banned-cryptocurrency-trading-in-nigeria-cbn/ while explaining the reason for the ban noted that cryptocurrencies do not have real values and cannot be trusted to generate returns on investments.

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