Expert Lauds CBN’s Lifting Of Ban On Cryptocurrency Transactions

A financial expert, Mr Okechukwu Unegbu has commended the Central Bank of Nigeria (CBN) for lifting the restrictions on cryptocurrency transactions.

Unegbu, a past president of the Chattered Institute of Bankers of Nigeria (CIBN), said this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.

The CBN had announced the reversal of the policy banning cryptocurrency transactions from the Nigerian banking system in a circular issued by Haruna Mustapha, its Director, Financial Policy and Regulation.

Mustapha said that the apex bank would now provide regulations for financial institutions on how to manage cryptocurrency to avoid misuse.

The CBN had issued a circular in February 2021, restricting banks and other financial institutions from operating accounts for cryptocurrency service providers.

The then CBN Governor, Godwin Emefiele, had announced that the restriction was necessary in view of the money laundering and terrorism financing risks posed by cryptocurrency.

Emefiele also said that the vulnerability inherent in cryptocurrency operations, as well as the absence of regulation and consumer protection measures were also responsible for the policy.

According to Unegbu, it is good to try every available product and opportunity within the financial system.

He, however, warned that cryptocurrency and other such financial products should not be allowed to be used for fraudulent activities or to hamper professionalism.

“There is actually nothing wrong with cryptocurrency, even though it has its own risk, just like any other business.

“It can be more effectively regulated, and a lot more awareness should be created about cryptocurrency so that Nigerians will be aware of the risks involved.

CBN Lifts Ban On Cryptocurrency Transactions In Banks

“But the banks should not be made to get directly involved in cryptocurrency as a matter of policy,”’ he said.

Unegbu also advised the CBN to hands-off regulation of Micro-finance Banks (MfBs), as it was not their turf.

“The CBN does not know how to handle MfBs because they are closer to the people.

“The MfBs should be helped to survive through policies, funding and development finance policies like the Anchor Borrowers Programme ” he said.

On allegations of financial impropriety against former CBN governor, Mr Godwin Emefiele, Unegbu described the allegations as “mind-boggling ”.

He, however, said that Emefiele deserved an opportunity to say his own side of the story, and to defend himself.