Nigeria Central Bank (CNB) Clarifies Crypto Freeze Claims – What’s Really Going On?
NAIROBI (Coinchapter.com) – The Central Bank of Nigeria (CBN) recently denied allegations that it issued a directive to freeze bank accounts associated with cryptocurrency exchanges. This denial came after confusion arose from a circulating report that incorrectly claimed the CBN had ordered such account freezes.
Initially, reports emerged stating the CBN had instructed banks to identify accounts engaged in transactions with cryptocurrency exchanges and place them under a six-month “Post No Debit (PND) instruction.” These reports also listed Bybit, KuCoin, OKX, and Binance as exchanges not licensed to operate in Nigeria.
However, the CBN surprisingly denied the report through an official post, only to delete the denial shortly after. Hours later, the CBN emphatically denied the allegations again, assuring the public that it had not issued any official orders to freeze bank accounts linked to crypto transactions on its official website. The bank urged the public to rely solely on its official channels for “authentic information.”
However, as of press time, no official orders regarding the freezing of banking accounts linked to crypto transactions have been published on the CBN’s official website.
The CBN’s conflicting statements have sparked confusion and frustration within Nigeria’s crypto community. X user @Crypto_omo expressed skepticism about the reports, stating,
Fake or not, we still need a solution to bring back the #Binance P2P in the country, the benefits are much more than any other platforms.”
Nigeria Central Bank Focuses on Unlicensed Platforms and P2P Transactions
Despite the CBN’s clarification regarding account freezes, they remain cautious about cryptocurrency activities. The bank has indicated its intent to target individuals and entities using unlicensed platforms or engaging in peer-to-peer (P2P) crypto transactions, particularly those involving Tether (USDT).
This development comes amidst the backdrop of Nigeria’s ongoing battle against inflation and naira devaluation. The government has previously cracked down on websites associated with crypto trading that were allegedly manipulating the exchange rate.
Binance in the Eye of the Storm
The alleged crackdown on cryptocurrency transactions has particularly impacted Binance, one of the world’s largest cryptocurrency exchanges. As CoinChapter previously reported, Binance and its executives are facing a high-profile tax evasion trial in Nigeria, which was recently adjourned to May 17 amid legal complexities.
The CBN had previously raised concerns about “suspicious financial transactions” occurring through Binance Nigeria in 2023, claiming that $26 billion had passed through the country via Binance from unidentified sources and users.
More recently, Binance’s US-based executive, Tigran Gambaryan, was arrested in Nigeria on money laundering charges. This followed a meeting with Nigerian officials regarding Binance’s regulatory compliance in the country.
Nadeem Anjarwalla, another Binance executive who attended the same meeting, fled custody in Nigeria and was subsequently located in Kenya. He now faces extradition proceedings there.
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