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CBN warns against investing in virtual currencies

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CENTRAL Bank of Nigeria (CBN) has cautioned Nigerians to be wary of investments in cryptocurrency, stressing that virtual currencies are not legal tender in Nigeria.

A press release issued by the Bank on reiterated that cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, etc and Exchanges such as NairaEx were not licensed or regulated by the CBN.

The statement signed by the Bank’s Acting Director in charge of Corporate Communications, Isaac Okorafor, emphasized that dealers and investors in any kind of cryptocurrency 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, therefore, warned Nigerians against investing in cryptocurrency as doing so would be at their own risk.

It will be recalled that on January 12, 2017, CBN issued a circular to banks and other financial institutions on virtual currency operations in Nigeria.

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In that circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, the apex bank had among other issues noted that virtual currencies were traded in exchange platforms that are unregulated, all over the world.
It further noted that transactions in virtual transactions in virtual currencies were largely untraceable and anonymous thereby making them susceptible to abuse by criminals, in money laundering and financing of terrorism.

The post CBN warns against investing in virtual currencies appeared first on Tribune.

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