Nigeria Warns Banks on the Rise of Altcoins

The Central Bank of Nigeria has issued a notice to financial institutions in the country, including banks, warning them of virtual currency transactions while effectively barring them from holding any reserves of virtual currencies.

Contrary to some chatter making rounds that Nigeria has banned bitcoin, the Central Bank of Nigeria (CBN) has issued a circular among banks to urge vigilance with virtual currency transactions. Penned by Kevin Amugo, the bank’s Director of Financial Policy and Regulation, the regulatory authority sees risks inherent with virtual currency transactions, such as potential misuse toward money laundering and terrorism financing.

Further, the central bank official pointed to virtual currency trading at exchanges “that are unregulated, all over the world,” in  quotes reported by one prominent regional publication Premium Times.

Five digital currencies excluding the oft-reported MLM scheme OneCoin figure are highlighted in the circular. They are Bitcoin, Ripple, Monero, LiteCoin and Dogecoin.


Warning ≠ Ban

The central bank also advised banks to against using, holding or transacting in virtual currencies. The authority also pushed banks to ensure that existing bank


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