The Central Bank of Liberia Issues a Public Notice Against a Local Cryptocurrency Saying it is Illegal

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The Central Bank of Liberia (CBL) has issued a public notice to a local company to desist from promoting its digital asset product saying it is not only illegal, but also ‘intended to undermine the country’s financial system.’

The Abundance Community Coin (TACC) was set to launch on May 14, 2021 before the warning was issued by the regulator.

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In a statement, CBL said:

The Central Bank of Liberia’s (CBL’s) attention has been drawn to a publication made in the May 6, 2021 edition of the FrontPage Africa newspaper, captioned “First Digital Asset Company to be Launched in Liberia”, with particular reference to the launching of Crypto currency in Liberia on May 14, 2021 by an organization named ‘The Abundance Community Coin (TACC).

The CBL herewith clarifies that at no time has the Bank approved any license for the above-mentioned company to transact ANY financial business in Liberia, in accordance with Section 3 (1) of the New Financial Institutions Act of Liberia.

The CBL views the attempt by TACC to introduce a digital financial product in Liberia without adherence to the required regulation as not only illegal, but also intended to undermine the country’s financial system.

In view of the foregoing, TACC is hereby warned and directed to immediately halt all publicity on the launch of the product and desist from carrying out any financial activity. Any attempt to proceed on the contrary, the CBL will have no other alternative but to pursue legal recourse in accordance with the law.

Accordingly, the CBL reassures the general public about safeguarding the financial system against action counterproductive to the operation of the system and urges members of the public to exercise due caution in transacting with such illegal financial institution.

                       – Central Bank of Liberia (CBL)

This is the first time that Liberian regulators have taken a stand on cryptocurrencies amid the global interest and adoption of digital assets.

By extension, this also sets a precedent on the position of the financial regulator on cryptocurrencies in Liberia. 

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RECOMMENDED READING: Our Recent Directive was Necessary to Protect the Financial System and Nigerians from Risks Inherent in Crypto Assets Transactions, Says Governor, Central Bank of Nigeria

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