25 Apr

Claims that the Central Bank of Nigeria (CBN) gave local banks orders to freeze customer accounts connected to unlicensed cryptocurrency exchanges have been denied.

The CBN has denied issuing any orders to financial institutions to freeze accounts connected to exchanges including Binance, OKX, Bybit, and KuCoin, despite reports to the contrary.

The central bank explained in a post on X that the regulator was not the source of the circular directing banks to freeze accounts connected to unregistered cryptocurrency exchanges. It advised people to rely on its official website when looking for accurate information.

"Always refer to the Bank's website for authentic information," stressed the CBN.

According to earlier reports, banks were instructed by the CBN to identify and freeze accounts that were involved in transactions with bitcoin exchanges. A "Post No Debit (PND) instruction" was to be applied to these accounts for a period of six months. Furthermore, Bybit, KuCoin, OKX, and Binance were included in the papers as exchanges without licenses to operate in Nigeria.

On the CBN's official website, there are, however, as of this writing, no official instructions concerning the freezing of bank accounts associated with cryptocurrency transactions.

The CBN's position on bitcoin transactions has changed with time. Nigeria's stance on the cryptocurrency market changed when the bank lifted its earlier ban on cryptocurrency activity in the nation in late 2023, encouraging institutions to offer cryptocurrency services. It's also crucial to remember that Nigeria is one of the top 50 major cities in the world with the infrastructure for widespread cryptocurrency adoption. 

April 2024, Cryptoniteuae

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