Crypto Payments Banned in Nigeria

​The Central Bank of Nigeria ordered all the banks to close users' accounts involving in crypto transactions in its Letter to All Deposit Money Banks, Non-Financial Financial Institutions and Other Financial Institutions on February 5, 2021.

The authority reminded "regulated institutions" that "dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.”The Central Bank of Nigeria also stressed that "such accounts are closed immediately.”

It is a signal that the Nigeria's government is tightening its regulation on virtual currencies and assets.

Virtual assets in Nigeria fall into the following categories: 

Crypto Asset;

Utility Tokens or "Non-Security Tokens";

Security Tokens;  and

Derivatives and Collective Investment Funds of Crypto Assets, Security Tokens, and Utility Tokens. 

Each crypto asset in Nigeria is considered a type of securities and should be registered with the authority. Any individuals or companies who have engaged in blockchain-related or virtual digital asset-based business must register at the Securities and Exchange Commission and be bound by its regulatory guidelines.