Don’t Invest In Bitcoins–CBN Warns Nigerians

By Ikenga Chronicles March 1, 2018

Don’t Invest In Bitcoins–CBN Warns Nigerians

The Central Bank of Nigeria (CBN) on Wednesday warned Nigerians that investing in cryptocurrencies, is at owners risk as it is not legal tender in the country.

The statement signed by the bank’s Acting Director, Corporate Communications, Isaac Okorafor, explained that dealers and investors in any kind of cryptocurrency, such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin and Onecoin, and exchanges such as NairaEx in the country are not protected by law.

The apex bank warned that Nigerians might lose their money in a bid to invest in cryptocurrencies because of the lack of legal backing.

This is however, not the first time the apex bank is speaking on this issue. It would be recalled that on January 12, 2017, it 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 CBN had, among other issues, noted that virtual currencies were traded on exchange platforms that were unregulated all over the world.

It noted that it could be abused by criminals for money laundering and financial terrorism because transactions in virtual currencies were largely untraceable and anonymous.