CBN Sanctions Access, UBA & Stanbic IBT Over Crypto Transactions

Fines Them N800M

The Central Bank of Nigeria, CBN, has imposed N800 million fine on three Deposit Money Banks in the country for violating regulations barring customers from transacting in cryptocurrencies.

According to the report the three banks are Access Bank Plc, Stanbic IBTC, and the United Bank for Africa Plc.

The report noted that the penalties were part of efforts by the apex bank to ensure that banks implement an order to block trading in cryptocurrencies due to the threat they pose to the nation’s financial system.

The directive was contained in a circular issued by the CBN in February 2021.

In addition, the CBN had in November directed banks to close the accounts of two individuals and a company for allegedly trading in cryptocurrencies.

Despite these regulations, Nigeria is reported to accounts for the largest volume of cryptocurrency transactions outside the United States.

The country also has the largest proportion of retail users conducting crypto transactions under $10,000.

The report stated that Access Bank was fined N500m for failure to close customers’ crypto accounts, according to a filing with the Nigerian Exchange Limited while UBA incurred a N100m penalty for digital-currency transactions by a customer.

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