Lagos: Nigeria's central bank on Friday ordered banks and financial institutions to close down accounts involved in transfer or exchange of cryptocurrencies, warning of sanctions it they did not comply.

"The bank hereby wishes to remind regulated financial institutions that dealing with cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited," it said in a statement posted on its website.

It said all banks and financial institutions were directed to identify persons and/or entities involved in cryptocurrency exchanges and close their accounts immediately.