(Ecofin Agency) - The Central Bank of Nigeria (CBN) has ordered the Deposit Money Banks and other financial institutions in the country not to transact in digital currencies as they are not legal tenders in Nigeria.

This digital currency according to CBN includes, bitcoin, ripples, monero, litecoin, dogecion and onecoin.

It warned that any institution or individual caught dealing in such currencies was doing so at their own risk, Punch news reports.

“The attention of the banks and other financial institutions is hereby drawn to the above risks and you are required to take the following actions pending substantive regulation or decision by the CBN: Ensure that you do not use, hold, trade and/transact in any way in virtual currencies; and ensure that existing customers that are virtual currency exchangers have effective AML/CFT controls that enable them to comply with customer identification, verification and transaction monitoring requirements,” Kevin Amugo, the Director, Financial Policy and Regulation, CBN, said in a circular.

He added that anywhere banks or other financial institutions are not pleased with controls put in place by the virtual currency exchangers or customers, the relationship should be stopped immediately.

Anita Fatunji