Central Bank of Nigeria Confirms Not Blocking Crypto Users

In a post on X on Wednesday, the Central Bank of Nigeria (CBN) clarified that this directive did not originate from the bank, while also urging the public to access the bank’s official website for “authentic updates.”

According to the directive, all deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs) are directed to identify individuals and entities conducting transactions with cryptocurrencies and ensure that those accounts are placed on post-no-debit (PND) directives for six months.

This information did not originate from the Central Bank of Nigeria. For authentic updates, please visit the Bank's official website at https://t.co/R9TQU0eRpp. pic.twitter.com/f6BNwRab3x

— Central Bank of Nigeria (@cenbank) April 24, 2024

In February 2021, the CBN issued a directive to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and OFIs to close accounts of persons or entities linked with cryptocurrency transactions in their systems. The regulatory agency continues to caution local financial institutions against trading in cryptocurrency assets or facilitating payments for cryptocurrency exchanges.

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The CBN cited concerns about money laundering (ML), terrorism financing (TF), cybercrime, and the volatility of cryptocurrencies as reasons for the ban. However, on December 22, 2023, the CBN lifted the ban and directed all banks and other financial institutions to offer cryptocurrency services. The apex bank also issued guidelines on operations for virtual asset service providers (VASPs) for all banks and OFIs.

According to the CBN, VASPs include any entity engaged in the exchange of virtual assets (cryptocurrencies), fiat currency, and the transfer of virtual assets. This development marks a departure from the CBN’s initial stance on restricting cryptocurrency transactions.