The Nigerian Deposit Insurance Corporation (NDIC) has warned that no insurance coverage is provided on trading of digital currencies not issued by the Central Bank of Nigeria (CBN), Premium Times reported.

Speaking at an annual workshop, Mohammed Umar, the director of research, policy and international relations (RPIR) at the NDIC, emphasized on the risks associated with digital currency trading and clarified that the NDIC will not provide insurance on any such activities.

“Nigerians must understand that adequate notice has been issued by all financial sector regulatory authorities, namely Central Bank of Nigeria, CBN and Nigerian Deposit Insurance Corporation, NDIC, to warn Nigerians who want to trade in bitcoins as gamblers. They can only do so at their own risk. The CBN cannot say anyone cannot trade with it and NDIC will not insure any trading in any currency not issued by the CBN,” Umar said.

He further said that an inter-agency committee has been setup to “sanitise the system.” The committee, with its secretariat at the CBN, comprises of the NDIC, Ministry of Justice, Economic and Financial Crimes Commission, EFCC, Nigeria Police, Department of State Security, DSS and other relevant agencies. It will keep a close eye on the activities of digital currency operators to ensure Nigerians were not exposed to unnecessary risks.

“If you can buy a bitcoin, nobody will stop you. It is at your own risk. A bitcoin is not covered by the CBN rules, and NDIC will not insure it. We have consistently warned Nigerians that anyone who trades in bitcoin does so at his own risk,” Umar added.

Deputy Director of RPIR at the NDIC, Dr. Sabo Katata, echoed similar views when he said (as quoted by Vanguard):

“Digital currency is for gamblers. If you want to invest in bit coins you can go ahead, for that is what you are. If you want to buy bit coins you can, but you are doing so at your own risk. The regulators will not come and protect you.”