Nigeria’s Central Bank Denies Crypto Crackdown

According to recent reports, Nigerian authorities are ramping up efforts to curb crypto trading, taking aim at popular peer-to-peer (P2P) platforms such as OKX, Binance, KuCoin, and Bybit. A circulating document on social media platform X has stirred controversy, outlining stringent measures to be taken against those involved in cryptocurrency transactions.

The Central Bank of Nigeria (CBN) swiftly refuted claims of its involvement in the circulated document, dismissing it as “fake content.” However, sources familiar with the situation note that reversals of unpopular policies are not uncommon in the region, raising questions about the credibility of official statements.

The memo outlined directives for financial institutions to identify and impose a six-month Post No Debit (PND) instruction on accounts associated with transactions on the mentioned crypto exchanges. The CBN justified its actions by asserting that these platforms lack the necessary licenses to operate in Nigeria and are currently under investigation. It warned of severe regulatory consequences for those failing to comply with the directive.

Additionally, the bank issued a stern warning against any involvement in the illegal trading of USDT, stating that offenders would face arrest. This move underscores the government’s determination to assert control over cryptocurrency activities in the country.

Furthermore, the CBN reiterated its stance that regulated financial entities are prohibited from engaging in cryptocurrency transactions or facilitating payments for crypto exchanges. Olumide Adesina, a prominent business journalist, elucidated that the CBN’s position emphasizes that only entities regulated by the Nigerian Securities and Exchange Commission (SEC) in the crypto market are authorized to interact with banks.

The escalating crackdown on crypto trading in Nigeria reflects broader global concerns regarding the regulation of digital currencies. As authorities tighten their grip on the burgeoning crypto market, stakeholders await further developments amidst an atmosphere of uncertainty and regulatory scrutiny.

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