Four Nigerian Lenders Penalized for Failing to Block Crypto Transactions – Regulation Bitcoin News

Four financial institutions were recently sanctioned by the Nigerian central bank for failing to prevent clients from using their platforms to transact cryptocurrency. According to one of the affected institutions, the central bank is using a certain “advanced ability” to detect crypto transactions.

Crypto Transactions Not Detectable by Lenders

A report by the Central Bank of Nigeria (CBN), stated that four banks were recently sanctioned for failing to follow a directive prohibiting Nigerian financial institutions decentralizing cryptocurrency transactions.

Stanbic IBTC bank, which was one of the financial institutions that were affected, received a $478,595 fine. The fine, according to the bank’s CEO Wole Adeniyi, relates to two bank accounts that have been used to facilitate crypto transactions.

While Adeniyi insisted that his organization is complying with the CBN’s directive, he admitted that his bank was unable to detect the transactions that ultimately prompted the central bank to take action. Unlike financial institutions, the CBN is reported to have access to an “advanced ability” that enables it to detect cryptocurrencies.

CBN’s ‘Advanced Ability’

As explained in the report, the central bank is now sharing access to its “advanced ability” with lenders that are eager to avoid its sanctions.

“It doesn’t seem that they are going to entertain a refund, but they are now sharing intelligence with us to be able to kind of deter clients,” Adeniyi is quoted explaining.

Besides Adeniyi’s bank, the CBN is reported to have imposed a fine of nearly $1.2 million against Access Bank Plc after the lender failed to close a client’s crypto account. Fidelity Bank was expected to pay slightly more than $34,000 while United Bank for Africa received a $239,000 equivalent.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.