CBN Warns Nigerians On Bitcoin Investment | The Precision

The Central Bank of Nigeria (CBN) has again cautioned Nigerians to be
wary of investments in crypto currency as they are virtual currencies
that are not legal tender in Nigeria.

The Apex Bank’s Acting Director, Corporate Communications, Mr Isaac
Okoroafor, in a statement on Wednesday in Abuja, said crypto currencies
such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, and
Exchanges such as NairaEx were not licensed or regulated by the CBN.

Okoroafor said that dealers and investors in any kind of crypto
currency in Nigeria were not protected by law, thus may be unable to
seek legal redress in event of failure of the exchangers or collapse of
the business.

The CBN further warned Nigerians against investing in crypto currencies as doing so would be at their own risk.

The News Agency of Nigeria (NAN) reports that the CBN had in Jan. 12,
2017, issued a circular to banks and other financial institutions on
virtual currency operations in Nigeria.

In the 2017 circular signed by the Director, Financial Policy and
Regulation Department, Kevin Amugo, the CBN had among other issues noted
that virtual currencies were traded in exchange platforms that were not
regulated all over the world.

Amugo further noted that transactions in virtual transactions were
largely untraceable and anonymous, thereby, making them susceptible to
abuse by criminals in money laundering and financing of terrorism. (NAN)