The Central Bank of Nigeria has fined First City Monument Bank (FCMB), Fidelity Bank Plc and Wema Bank a whopping N514 million for failing to comply with regulations prohibiting customers from transacting in cryptocurrencies.
This pushes the total fines for contravening the CBN circular on cryptocurrency to a massive N1.315 billion for 6 Nigerian banks, based on data obtained by Nairametrics.
Recall that Nairametrics reported earlier that the apex bank fined three Nigerian commercial banks a total of N800 million for failing to comply with regulations prohibiting consumers from transacting in cryptocurrencies.
Read: Why CBN does not want Nigerian banks to deal with crypto
Updated breakdown of crypto fines
- First City Monument Bank (FCMB) was also fined N400 million by the Central Bank of Nigeria (CBN) over its failure to close four accounts of customers said to be involved in cryptocurrency.
- Fidelity Bank Plc received a sanction of N14.28 million for cryptocurrency infractions, the bank said in its 2021 audited financial statement.
- Wema Bank got a penalty of N100 million for contravening the CBN circular on cryptocurrency.
- United Bank for Africa Plc was fined N100 million naira for a customer’s digital-currency transactions.
- Access Bank Plc, the country’s largest lender by total asset, was fined N500 million for failing to shut down customers’ crypto accounts.
- CBN penalized Stanbic IBTC Bank, the local unit of Standard Bank Group Ltd., N200 million for two accounts allegedly used for crypto transactions.
Read: CBN fines Nigerian Banks N800 million for facilitating cryptocurrency transactions
What you should know
- The apex bank issued a circular on February 5, 2021, warning and reminding local financial institutions against conducting crypto transactions or enabling payments for crypto exchanges.
- Hence, CBN directed financial institutions to close the accounts of anyone participating in or operating cryptocurrency exchanges immediately.
- Violations of the CBN directive resulted in a loss of N1.314 billion for 6 Nigerian banks.
- The CBN has ignored pushback against its crypto regulation and has advised Nigerians to adopt its CBDC, the eNaira.
Famer
I think CBN wields too much autocratic power and very annoying nobody queries them! Even the president of the country takes a major decision without subjecting it to the vetting of the legislature. So who sanctions CBN for all its trial by error policies, reckless malpractices, and several atrocities? Also whose purse do all these fines go to? The CBN Gov certainly needs to be asked these and more questions.
For over sixty years now, I never knew the federal govt can’ still be acting as an educated illiterate.
Is the bank not gaining from the transactions? Is the Apex bank not gaining from the banks?
Why is Nigerian so ignorant?
We pray never to have this set of people in government again because they lack knowledge and wisdom to move this country forward. There are a lot of things to do in this country by this government but they never do them
CBN should also be fined for initiating e-money. They are enfranchising on Nigerians fundamental human rights.
They hate opportunities in this country…..
This crypto currency transactions can even settle Nigeria’s debt in less than a year….
It even has the power to turn the exchange rate to our favour
Arrant nonesense… Only God knows when our government will be civilized and get Sense