Nigeria’s central bank stepped up its crackdown on cryptocurrency traders – Emerging Markets Bitcoin News

Nigeria’s central bank stepped up its crackdown on cryptocurrency traders – Emerging Markets Bitcoin News


According to reports, a few days after the launch of the e-naira digital currency, the Central Bank of Nigeria (CBN) is now increasing its pressure on cryptocurrency traders.

Bank employee warning

In a memo to employees seen by News, FCMB, one of Nigeria’s leading banks, warned its employees not to help cryptocurrency traders.Bank reveals any accounts found to violate CBN instruct Will be closed.

In addition, FCMB stated that employees who deliberately fail to disclose the existence of accounts involved in cryptocurrency transactions will also be punished. According to the memorandum, all FCMB employees should now participate in monitoring accounts, transactions and customers to ensure that the bank fully complies with the CBN directive.

At the same time, in order to help employees easily identify the accounts used by cryptocurrency traders, FCMB has produced and shared a list of 20 red flags that need attention. Some of these red flags include bank accounts that receive large inflows of funds from a large number of payees every day, and accounts that act as foreign exchange offices without CBN permission.

CBN increases pressure

Another sign that CBN is increasing pressure is a letter allegedly written by the Central Bank instructing all banks to close accounts belonging to Nnamdi Francis Okereke and Nwaorgu Kingsley Chibuzor. In this letter that began circulating on social media a week after the launch of e-naira, CBN claimed that these accounts were used for cryptocurrency transactions, which violated the central bank’s February 5th directive.

The same letter also requested the bank to close the account belonging to the TVS Hallmark Service and place the funds in the suspended account.

Nigeria's Central Bank steps up its crackdown on cryptocurrency traders

Respond to these reports tweetStakeholder Senator Inhenyen of the Blockchain Technology Association of Nigeria (SIBAN) called CBN’s actions “excessively discriminatory and unconstitutional.” Inhenyen argued that only the Nigerian legislature has the authority to take action against cryptocurrencies. He explained:

“This is not regulation, but oppression. Where is the Nigerian National Assembly? The central bank’s actions are ultra vires. This must stop. We are not in a lawless country. Only the National Assembly can illegalize cryptocurrency.”

What do you think is behind CBN’s efforts to stop cryptocurrency traders again? Tell us what you think in the comments section below.

Image Source: Shutterstock, Pixabay, Wiki Commons, Red Confidential

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