The Central Bank of Nigeria (CBN) has again cautioned Nigerians to be wary of investments in crypto currency, saying that they are virtual currencies that are not legal tender in Nigeria.
CBN’s Acting Director, Corporate Communications, Mr. Isaac Okoroafor, in a statement on Wednesday in Abuja, said crypto currencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, and Exchanges such as NairaEx are not licensed or regulated by the CBN.
Okoroafor said that dealers and investors in any kind of crypto currency in Nigeria are not protected by law, thus may be unable to seek legal redress in the event of failure of the exchangers or collapse of the business.
The CBN further warned Nigerians against investing in crypto currencies as doing so would be at their own risk.
The apex bank had in January 12, last year issued a circular to banks and other financial institutions on virtual currency operations in Nigeria.
In the 2017 circular signed by the Director, Financial Policy and Regulation Department, Mr. Kevin Amugo, the CBN had among other issues noted that virtual currencies are traded in exchange platforms that are not regulated all over the world.
Amugo further noted that transactions in virtual transactions were largely untraceable and anonymous, thereby, making them susceptible to abuse by criminals in money laundering and financing of terrorism.