Nigeria's Central Bank says cryptocurrencies were a threat

Nigeria’s central bank said it ordered deposit-taking banks and other financial institutions to close accounts dealing in cryptocurrencies because it was threatening the country’s financial system.

“The recent regulatory directive became necessary to protect the financial system and the generality of Nigerians from the risks inherent in crypto assets transactions,” the central bank said in a statement Sunday.

Cryptocurrencies are increasingly being used for money laundering, terrorism financing and other criminal activities due to the anonymity that they provide, the regulator said in the statement signed by its spokesman Osita Nwanisobi.

The central bank said it finds “no comfort” in the use of cryptocurrencies and will “do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators.”