Fidelity, Wema, FCMB pay N514m for facilitating cryptocurrency transactions

The Central Bank of Nigeria has sanctioned three Nigerian Banks for facilitating cryptocurrency transactions thus violating CBN regulation that prevent banks operating in Nigeria financial space participating in cryptocurrency transaction. The three banks are  First City Monument Bank (FCMB), Fidelity Bank Plc and Wema Bank. They were fined N514 million for failing to comply with regulations prohibiting customers from transacting in cryptocurrencies.

This new sanction pushes the total fines for contravening the CBN circular on cryptocurrency to N1.315 billion for 6 Nigerian banks, the apex bank had earlier fined three Nigerian commercial banks a total of N800 million for failing to comply with regulations prohibiting consumers from transacting in cryptocurrencies. 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 on the other hand 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. Also United Bank for Africa Plc was fined N100 million 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 penalised Stanbic IBTC Bank, the local unit of Standard Bank Group Ltd., N200 million for two accounts allegedly used for crypto transactions.

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.