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Again, CBN Cautions Nigerians On Virtual Currency Investment

The Central Bank of Nigeria (CBN) has again cautioned Nigerians on investments in cryptocurrencies, pointing out that virtual currencies are not legal tender in the country.

The apex bank , in a statement on Wednesday clarified that  cryptocurrencies such as Litecoin, Dogecoin, Onecoin, Bitcoin, Ripples, Monero and many others and Exchanges such as NairaEx were not licensed or regulated by it.

The Bank’s Acting Director Corporate Communications Department, Isaac Okorafor, stated 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.

He therefore warned Nigerians against investing in any cryptocurrency  in view of the risks associated with such transactions.

The CBN had on January 12 last year  issued a circular to Banks and other financial institutions on virtual currency operations in Nigeria.

In the circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, the apex banking institution noted that virtual currencies were traded in exchange platforms that are unregulated, all over the world.

It further pointed out 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, among other abuses.

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