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Crypto ban: Nigerian bank releases guidelines to enforce CBN directive

crypto ban

TL;DR Breakdown

  • FCMB releases guidelines to enforce the crypto ban by CBN.
  • The bank warns its staff against aiding crypto traders.
  • SIBAN President says the ban is unlawful.

With cryptocurrencies now becoming a household name in the financial sector, every trader is looking to make profits trading the assets. Asides from the shiny and rewarding aspect of crypto, the industry has become a haven for illicit activities. This is why countries across the globe are taking measures to regulate their crypto sectors.

In a new memo, FCMB, one of the biggest banks in Nigeria, has reiterated the importance of enforcing the CBN’s crypto ban to its staff. Just days after the launch of the eNaira CBDC, the country’s premier bank is mounting pressure on crypto traders.

The FCMB guideline is divided into 20 parts

In the memo sent by FCMB, it has warned its staff against helping crypto traders. The bank mentioned that should any account be found wanting of the earlier directive by the Central bank, and such account will risk closure. FCMB also noted that if a staff member fails to report an account used for crypto services, such staff will face disciplinary actions.

The memo highlights that all members of staff of FCMB must monitor all accounts and the transactions carried to make sure they are in line with the directives. Also, FCMB has released its 20 point guideline that can help its staff keep watch over accounts suspected to be involved in crypto activities. A few of the policies include reporting accounts with massive amounts of payments, accounts acting as Bureau de Change without approval, among other things.

SIBAN president says the crypto ban is unlawful

Following the news on social media, a lot of top personalities have reacted to the news. One such person is the Stakeholders in Blockchain Technology Association of Nigeria President Senator Inhenyen. According to Inhenyen, the latest move by the central bank goes against the constitution. The Senator went further by stating that only the legislative arm of the government is empowered to enforce such rules across the country.

In his explanation, Inhenyen mentioned that the act by CBN can be classified as oppression, and the National Assembly of the country must do something about it. In February, the Central bank of Nigeria announced that it had banned all crypto activities across the country. With the crypto ban in place, banks across the country will no longer service crypto exchanges and wallets.

Giving a reason for the ban, the governor of the CBN, Godwin Emefiele, mentioned that it would help the country tackle issues emanating from the sectors like volatility and money laundering. The governor also said that majority of the trades carried out using crypto in the country are operated by illicit actors to fund their criminal activities. After the crypto ban announcement, the premier bank instructed that some bank accounts be frozen while others were closed.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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