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Nigeria’s Central Bank to Freeze Bybit, KuCoin, OKX, Binance Accounts
The Central Bank of Nigeria (CBN) has directed all banks and financial institutions to identify individuals or entities involved in transactions with cryptocurrency exchanges. Per CBN’s instructions, such accounts should be placed on a Post No Debit (PND) instruction for six months.
Under the “Post No Debit instructions,” customers are prohibited from conducting certain transactions, such as withdrawing funds or making payments. In light of this, the CBN released a circular identifying Bybit, KuCoin, OKX, and Binance as crypto exchange platforms lacking operational licenses in Nigeria.
The apex bank has emphasized its determination to clamp down on individuals illicitly trading Tether USDT on the platforms mentioned, particularly through peer-to-peer (P2P).
Furthermore, the CBN asserted that regulated financial institutions are prohibited from accepting or facilitating cryptocurrency payments. This stance contradicts an earlier ban lifted in December 2023, which allowed banks to facilitate crypto exchange transactions.
Due to the swift depreciation of the naira and inflation surge reaching 29.9%, the government has shifted focus towards platforms facilitating cryptocurrency transactions.
It recently took action against crypto trading platforms, particularly those known for fixing valuations different from the CBN Naira rate. Notably, Binance has faced intensified investigations following allegations of questionable financial transactions conducted through Binance Nigeria in 2023.
CBN’s governor, Olayemi Cardoso, revealed that an estimated $26 billion flowed through Nigeria via Binance in 2023, originating from undisclosed sources and users. This development has drawn attention to potential regulatory breaches within the crypto ecosystem.
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