According to a recent release, the Central Bank of Nigeria ordered financial institutions to identify individuals or businesses using Bybit, KuCoin, OKX, and Binance for transactions on Tuesday.
The public, Non-Bank Financial Institutions (NBFls), Other Financial Institutions (OFIs), Deposit Money Banks (DMBs), and other financial institutions (OFIs) were all reminded in the letter that it is illegal to deal in cryptocurrencies or process payments for cryptocurrency exchanges.
The most recent move follows a protracted spat that has garnered international attention between Binance and the Nigerian government. The Nigerian government brought two of Binance’s executives into the nation, detained them, and allowed one of them to flee, alleging that Binance encouraged currency speculation that caused the country’s currency, the naira, to plummet.
Additionally, the financial institutions must “ensure that such accounts are put on PND (Post No Debit) instruction for six months,” according to the regulatory body. Severe regulatory fines would apply to any violations of the directive.
Notably, the letter threatened to imprison anyone found guilty or acting as a “suspected agent” who was surreptitiously using any cryptocurrency platform to “buy and sell USDT illegally.” The “duty of the Central Bank of Nigeria is to investigate the country’s economic problems.”
Nathaniel Luz, CEO of Flincap, an OTC crypto exchange platform, noted that “it’s noteworthy that the recent circular did not mention any indigenous crypto exchanges, likely because many Nigerian crypto companies, such as Flincap, have been actively pursuing the required licences.”