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Investors’ in any kind of crypto currency not protected by law—CBN

The Central Bank of Nigeria (CBN) has issued a serious caution against any one investing in any form of cryptocurrency, noting that cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, among others and Exchanges such as NairaEx were not licensed or regulated by the CBN.

Otherwise, there is no protection for dealers and investors in any kind of crypto currency in Nigeria by any law or regulation in Nigeria; meaning that issues arising from such transactions cannot be redressed in competent court of jurisdiction should there be breach or failure of the exchangers or collapse of the business.

In a terse press statement, signed by the bank’s Acting Director in charge of Corporate Communications, Isaac Okorafor, CBN warned Nigerians against investing in cryptocurrency as doing so would be at their own risk.

Business Hilights can recall that earlier in January last year; the apex bank had issued a circular to banks and other financial institutions on virtual currency operations in Nigeria.

The said circular issued by the Director, Financial Policy and Regulation Department, Kevin Amugo, 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 currencies were largely untraceable and anonymous thereby making them susceptible to abuse by criminals, in money laundering.

Besides, there are confirmed reports that the key driver of virtual currencies is financing of terrorism, meaning that Nigerians involved may be charged for terrorism in a Nigerian court in the event of arrest.