In a refreshing turn of events, the Central Bank of Nigeria (CBN) has come out to debunk recent rumors of freezing crypto users' accounts on major platforms like Bybit, OKX, Kucoin, and Binance, labeling them as nothing but fraudulent claims.
In a post that sent ripples across the digital sphere on Wednesday, the CBN took to X to set the record straight, emphasizing that the alleged account blockage directive did not originate from their end. Instead, they urged the public to seek authentic updates only from the bank's official website.
This latest twist in the crypto saga follows the CBN's directive to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs) to identify and place individuals and entities dealing in cryptocurrencies on a six-month post-no-debit (PND) directive.
Flashback to February 2021, when the CBN dropped a bombshell by instructing DMBs, NBFIs, and OFIs to shut down accounts linked with crypto transactions. Citing concerns ranging from money laundering to terrorism financing and cybercrime, coupled with the notorious volatility of cryptocurrencies, the regulatory giant put its foot down, warning local financial institutions against getting entangled in crypto dealings.
But fast forward to December 22, 2023, and we witness a remarkable U-turn from the CBN as they lift the ban, giving the green light for banks and other financial institutions to dive back into the crypto pool. Not only did they rescind the ban, but they also rolled out guidelines for the operation of virtual asset service providers (VASPs), encompassing all banks and OFIs.
VASPs, as defined by the CBN, cover any entity facilitating the exchange of virtual assets, be it cryptocurrencies or fiat currency, along with the transfer of these virtual assets. This groundbreaking move signifies a significant departure from the CBN's previous hardline stance on crypto transactions, ushering in a new era of potential in Nigeria's crypto landscape.
