The Central Bank of Nigeria (CBN) has found itself in a position where it had to refute a claim that it had ordered banks and other financial bodies to track down accounts connected to cryptocurrency trading platforms and to impose a Post No Debit (PND) freeze on those accounts for six months.
A “Post No Debit” command is a measure taken by a banking or financial organization to limit specific operations in a client’s account. Under a Post No Debit order, the account owner is barred from conducting debit operations, which includes being unable to pull out money or execute payments from the account in question.
There was a mix-up when the central bank initially retracted the news about X, only to remove the retraction afterward. Several hours later, they asserted that the accusations were, in fact, untrue.
The bank stated its intention to apprehend any individual it suspects of being involved in the purchase and sale of Tether, a cryptocurrency known as USDT, for money laundering. USDT Utilizing the specified platforms for unauthorized activities, particularly through the use of peer-to-peer (P2P) techniques.
The purported circular additionally indicated that regulated financial entities participating in cryptocurrency activities or assisting with payments for cryptocurrency exchanges are forbidden. Nevertheless, this is in conflict with a previous prohibition that was revoked in December 2023. Enabling financial institutions to manage and process transactions. for crypto exchanges.
Roughly two years following the imposition of a widespread prohibition on banks’ involvement with digital currencies, the central bank has now removed the restriction.
Based on an announcement from the CBN, acknowledged that due to the rising worldwide interest and acceptance of cryptocurrencies, it would be unreasonable to keep up with the previous stance. Tight measures were placed on banks and other monetary organizations in 2021.
As a result of the naira’s rapid loss in value and the ensuing inflation rate of 29.9%, authorities turned their focus toward cryptocurrency service providers. The government took action against online platforms known for facilitating crypto transactions, which had become infamous for establishing unofficial exchange rates for the naira, by blocking access to their websites.
Binance faced considerable examination when the Central Bank of Nigeria expressed worries about”Dubious financial activities”The events unfolding through Binance Nigeria in 2023.
Olayemi Cardoso, the chief of CBN, stated that in 2023, Binance had processed $26 billion coming into Nigeria, with the origins and users of these funds remaining unknown.
Binance is encountering additional obstacles in Nigeria, as its executive Tigran Gambaryan, who operates from the United States, has been apprehended in the nation. He is confronted with five charges Tied to the practice of legitimizing illegally obtained funds, there were discussions with officials from Nigeria concerning Binance’s adherence to regulatory standards.
Nadeem Anjarwalla, an executive who had discussions with Nigerian authorities regarding regulatory concerns with Binance, later fled from custody. He was located in Kenya, where he is now facing the process of being extradited. .
