Nigerian central bank to freeze Bybit, KuCoin, OKX, Binance user accounts

Amaka Nwaokocha5 minutes agoNigerian central bank to freeze Bybit, KuCoin, OKX, Binance user accountsThe CBN through the circular, also stated that regulated financial institutions dealing in crypto or facilitating payments for crypto exchanges are prohibited.43 Total views1 Total sharesNewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Central Bank of Nigeria (CBN) has issued a directive requiring all banks and financial institutions to identify individuals or entities engaging in transactions with cryptocurrency exchanges and to ensure that such accounts are put on Post No Debit (PND) instruction for six months.

A “Post No Debit” instruction is a directive issued by a bank or financial institution to restrict certain transactions on a customer’s account. When a PND instruction is in place, the account holder is prohibited from making debit transactions, meaning they cannot withdraw funds or make payments using the affected account.

According to the circular shared with Cointelegraph, the CBN listed Bybit, KuCoin, OKX, and Binance crypto exchanges, stating that they are not licensed for operations in Nigeria.

The bank said it would catch anyone it believes is buying and selling Tether (USDT) on the listed platforms illegally, especially those using peer-to-peer (P2P) methods.Central Bank of Nigeria Circular ordering a restriction on crypto users" accounts. Source: Central Bank of Nigeria

The CBN also stated that regulated financial institutions engaged in crypto or facilitating payments for crypto exchanges are prohibited. However, this contradicts an earlier ban lifted in December 2023 allowing banks to facilitate transactionsfor crypto exchanges.

The Central Bank lifted the ban nearly two years after enforcing a comprehensive ban on banks engaging with digital currencies.

According to a statement by the CBN at the time, it recognized that the increasing global demand and adoption of crypto make it unjustifiable to maintain the stringent restrictions imposed on financial institutions in 2021.

Related:Binance exec will remain in Nigerian custody until May 17 bail hearing: Report

However, due to the swift devaluation of the naira and the subsequent inflation rate of 29.9%, the government shifted its attention to platforms offering cryptocurrency services. It disabled websites associated with crypto trading that had gained notoriety for setting informal valuations for the naira.

Binance encountered significant scrutiny when the Central Bank of Nigeria (CBN) raised concerns regarding “suspicious financial transactions” occurring through Binance Nigeria in 2023.

CBN head Olayemi Cardoso said $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.

Binance is encountering further challenges in Nigeria, with its executive Tigran Gambaryan, who is based in the United States, being detained in the country. He faces five charges linked to money laundering following a meeting with Nigerian officials regarding Binance"s regulatory concerns.

Nadeem Anjarwalla, one of the executives who came to meet with Nigerian officials about Binance’s regulatory issues, subsequently escaped custody and was tracked down to Kenya, from where he faces extradition.

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