CBN Goes After Commercial Banks Still Processing Cryptocurrency Transactions, Fines Them N800 Million

  • Three Nigerian banks have been charged by the Central Bank of Nigeria for facilitating cryptocurrency transactions
  • CBN is angry that despite its guidelines prohibiting commercial banks from dealing with cryptocurrency, they have been flouted
  • Stray banks will now have to pay a total fine of N800m with a stern warning against repeating it in the future

Three commercial banks have been asked to pay an 800 million naira fine by the Central Bank of Nigeria for not allowing cryptocurrency transactions despite its ban.

In a circular of On February 5, 2021, the Central Bank of Nigeria (CBN) ordered all banks to refrain from transactions in and with entities dealing in cryptocurrency.

The CBN has also ordered banks to close the accounts of individuals or entities involved in cryptocurrency transactions within their systems.

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CBN goes after commercial banks that still process cryptocurrency transactions, fining them 800 million naira
CBN Governor Godwin Emefiele has not held back on his stance against the cryptocurrency Credit: Chris J. Ratcliffe/Bloomberg via Getty Images
Source: Getty Images

According to a report by Bloombergsanctioned banks are Stanbic IBTC Bank, Access Bank Plc and United Bank for Africa allowed transactions to go through.

The report shows that CBN has created a system to verify cryptocurrency transactions that commercial banks may have overlooked.

Breakdown of fines

For the offence, Access Bank Plc was fined N500 million for failing to close customers’ crypto accounts.

United Bank for Africa Plc has been fined N100 million for a customer’s digital currency transactions.

CBN has fined Stanbic IBTC Bank, the local unit of Standard Bank Group Ltd., N200 million for two accounts allegedly used for crypto transactions.

The CEO reacts

According to PremuimTimes, Stanbic IBTC Bank, a unit of Standard Bank Group Ltd. was fined 200 million naira ($478,595) for alleged crypto transactions related to two accounts.

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Managing Director Wole Adeniyi claimed that the transaction may have adopted his system by mistake.

He said:

“It doesn’t look like they’ll be accepting a refund, but they’re now sharing information with us to be able to deter customers.”

Investors poured 14.5 trillion naira into cryptocurrency in 2021 as demand for crypto-related jobs surged reported that professional networking site, LinkedIn, said crypto job listings hit an all-time high in 2021, growing 395%.

According to the LinkedIn report, jobs like bitcoin, ethereum, blockchain, and cryptocurrency grew in 2021 in the US, which outpaced that of the tech industry, registering a 98% increase over the same period.

The analysis revealed that most assignments were software-focused and in finance positions. However, LinkedIn said demand for people in professional services such as accounting and consulting, staffing and computer software has also increased.


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