CBN Slams N514m Fine On Fidelity Bank, Others Over Illegal Crypto Transactions

 

Touchaheart Nigeria reports that the Central Bank of Nigeria (CBN) has imposed a N514 million fine on Fidelity Bank Plc, First City Monument Bank (FCMB),  and one other commercial bank for facilitating unlawful crypto businesses in Nigeria.

 

 

 

The fine was imposed for failing to follow restrictions barring users from transacting in cryptocurrency.

 

 

This brings the total fines for breaking the CBN’s cryptocurrency circular to a whopping N1.315 billion for six Nigerian banks. According to information gathered from iexclusivenews Nigeria.

 

 

The apex bank had previously fined three Nigerian commercial banks a total of N800 million. Because it disobeyed restrictions barring customers from transacting in cryptocurrency.

 

 

BREAKDOWN OF FINE

 

Fidelity Bank Plc was fined N14.28 million for cryptocurrency violations, according to the bank’s audited financial statement for 2021.

 

 

The Central Bank of Nigeria (CBN) also fined First City Monument Bank (FCMB) N400 million for failing to cancel four accounts of customers suspected of being involved in cryptocurrency.

 

 

Stanbic IBTC Bank, a local unit of Standard Bank Group Ltd., was fined N200 million by the CBN for two accounts that were allegedly used for cryptocurrency transactions.

 

 

Recall that on February 5, 2021, the Central Bank of Nigeria released a circular. Local financial institutions were warned and reminded not to undertake crypto transactions or enable payments for crypto exchanges

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The CBN, on the other hand, has ordered financial institutions to immediately terminate the accounts of anyone who participates in or operates cryptocurrency exchanges.

 

 

Six Nigerian banks lost N1.314 billion as a result of CBN directive violations.

 

 

The CBN has rejected criticism of its crypto regulation and recommended Nigerians to use the eNaira, the CBN’s CBDC.