Nigeria’s Central Bank Issues Denial Regarding Alleged Freeze on Crypto Accounts

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The Central Bank of Nigeria (CBN) disputes reports that it ordered banks and financial institutions to identify users of cryptocurrency exchanges. According to rumors, accounts involved in such transactions were placed on a six-month restriction list called Post No Debit (PND). However, the CBN firmly denies giving instructions for the identification of crypto traders or freezing their accounts temporarily.

The central bank’s denial of report X created confusion, as they first denied the accusations but later retracted their denial. They eventually admitted that the allegations were false, leaving people unsure of the actual facts.

The data you have came from neither the Central Bank of Nigeria nor an authorized source. To ensure accuracy, kindly check their official website located at [website link].

— Central Bank of Nigeria (@cenbank) April 24, 2024

In December 2023, the financial institution ended the ban on banks processing transactions for licensed crypto exchanges that had been in place for two years. Yet, this latest move indicates increasing apprehension within the Nigerian government about the potential risks cryptocurrencies pose to the country’s economic balance.

Binance Faces Scrutiny amid Nigeria’s Naira Crisis

Nigeria’s currency, the naira, has experienced significant drops in value nationwide, leading to a high inflation rate of 29.9% by April 2024. In response to this financial instability, authorities are carefully examining cryptocurrency platforms due to concerns that they could add to the chaos.

Binance, the leading cryptocurrency exchange, has drawn attention from the Central Bank of Nigeria (CBN) due to approximately $26 billion in questionable financial transactions that reportedly flowed through Binance’s Nigerian branch. The bank identified these transactions as originating from unknown sources and users, leading to investigations.

Binance executives Tigran Gambaryan and Nadeem Anjarwalla are making headlines for different reasons. While Gambaryan is under investigation for alleged money laundering activities in Nigeria as per Nigerian officials, Anjarwalla is wanted in Kenya for evading custody and is currently going through extradition proceedings.

The Central Bank of Nigeria (CBN) has blocked access to websites enabling cryptocurrency trading, giving users an unauthorized platform for Nigerian Naira conversions. This action underscores their apprehension about the impact of unregulated markets on the value of the Nigerian currency.

The Nigerian crypto community needs clear regulations for a safe digital asset environment. Setting guidelines adds legitimacy. Also, implementing safeguards to shield users’ interests is crucial for a fair and equitable embrace of cryptocurrencies in Nigeria.

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2024-04-24 18:17