The Central Bank of Nigeria (CBN) has commenced the seizure of funds and blockage of accounts with history of cryptocurrency trades in the country.
Recall that the apex bank, last Friday, ordered the closure of bank accounts belonging to persons who transacts in cryptocurrency.
However, the CBN directive does not include forfeiture of funds in the accounts.
The directive was contained in a circular to banks and other financial institutions, signed on Friday by the Director of Banking Supervision, Bello Hassan.
The CBN statement read in part:
Accordingly, all DMB’s NBFI’s or OFI’s are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.
Please, note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect.
Meanwhile, reports have emerged that customers no longer have access to their funds following trading activities with cryptocurrency.
A bank customer revealed that he could not access his account and funds in one of the new generation banks since Tuesday.
He said:
I got to the bank on Tuesday to move my money to another bank but was told the CBN has frozen the money in account. As it stands now, I can’t open another account with the bank nor operate the old account and my funds are frozen.
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Another bank customer said he was denied of his funds in an account he never used for cryptocurrency trading before.
He stated:
I use a separate account for trading and keeping funds. When I got to the bank I use for trading, they said the account was blocked. I went to the bank where I keep funds, those ones said CBN has taken over the funds and accounts. Isn’t this madness?.
Confirming the development, a bank official, who pleaded anonymity, said that the CBN directives to banks also affects accounts that have history of cryptocurrency trading.
He said:
Accounts with history of cryptocurrency trading that have now stopped are also affected. Its not the bank’s policy but the CBN’s, and it has to be obeyed to the letter.
In the meantime, a cryptocurrency is a virtual or digital currency that appreciates or depreciates on the whims of market forces.
