Business
–
The Central Bank of Nigeria warns Nigerians not to patronise Bitcoins or other virtual currencies
| By Anayo Ezugwu |
FOLLOWING the return of MMM Nigeria, Nigeria’s number one Ponzi scheme, on Friday, January 13, the Central Bank of Nigeria, CBN, has warned Nigerians against the use of virtual currencies, including bitcoin, ripples, litecoin. A statement issued on Tuesday, January 17, by the CBN stated that virtual currencies are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions.
“The attention of bank and other financial institutions is hereby drawn to the above risks and you are required to take the following actions actions pending substantive regulation or decision by the CBN. Ensure that you do not use, hold, trade and/or transact in any way in virtual currencies. Ensure that existing customers that are virtual currency exchangers have effective capital AML/CFT controls that enable them to comply with customer identification, verification and transfer, monitoring requirements.
“Where banks or other financial institutions are not satisfied with the controls put in place by the virtual currency exchanger/customers, the relationship should be discontinued immediately. Any suspicious transactions by these customers should immediately be reported to the Nigerian Finance Intelligence Unit, NFIU.”
The CBN said anyone trading in bitcoin is doing so at his or her own risk. “The CBN reiterates that VCs such as bitcoin, ripples, monero, litecoin, dogecion, onecoin, etc., and similar products are not legal tenders in Nigeria. Thus, any bank or institution that transacts in such businesses does so at its own risk.”
Bitcoin was the best performing currency of the year 2016. It has appreciated from four cents in 2010 to over $1,000 in 2017. The CBN’s warning was provoked by the return of MMM Nigeria with its over two million subscribers. MMM Nigeria which recently posted a message on its site intimating its customers that it may be adopting the bitcoin in future transactions.
A statement posted under the heading: MAVRO-50% IS AVAILABLE WHEN YOU PROVIDE HELP IN BITCOIN, the online website hinted that “From now on, there is an opportunity for all of the participants of MMM Nigeria to acquire Mavro-50 percent when you provide help in Bitcoin. “This is to officially inform you that MMM Nigeria is open for business a day earlier than promised! Let’s go there Nigerians,” the post said.
This time around the Russian Ponzi scheme is back with new conditions, which includes encouraging its members to use bitcoin for transactions. Upon resumption, the scheme says its members will now be able to pay and receive money in bitcoins, the digital currency. MMM cites bitcoin’s steady growth in value as a reason for participants to adopt the currency. “In a month, not only 30 percent will be added to your initial amount, but, it can increase itself due to Bitcoin price growth,” MMM’s letter to its participants partly reads.
Last week, MMM promoters issued instructions to its participants whose accounts were frozen, to perform “Promo Tasks: A New Tool for MMM Community Development.” In the MMM message, subscribers were told to perform tasks, both online and offline, to promote the scheme and drive “traffic and participation” by the time the restriction on the account is lifted.
“Bitcoin does not belong to any government, companies or particular persons, which allows you to be independent from the banks and to manage your money as you want. MMM and Bitcoin strives to beat social inequality and to make the world more fair. With the help of Bitcoin, MMM participants can provide financial help to each other worldwide,” it concluded.
MMM, before suspending operation on December 14, had over two million participants in the country, made inroads into the Nigerian investment market in 2015. MMM’s decision to suspend the accounts of its patrons in 2016 threw millions of Nigerians into anguish.
— Jan 30, 2017 @ 01:00 GMT
|
Tags:
