Central bank of Nigeria Debunks Rumors of New Crypto Ban

Recently, rumors surfaced about a directive from the Central Bank of Nigeria (CBN) allegedly warning local financial institutions against dealing with cryptocurrencies and supporting crypto exchanges. This was surprising as Nigeria had lifted a previous ban on banks working with digital asset providers four months earlier. These reports claimed the CBN had issued a circular urging banks and other financial bodies to avoid cryptocurrency transactions, referencing an older prohibition.

This alleged directive also listed specific crypto exchanges like Binance and OKX as off-limits, and detailed measures against entities engaged in crypto transactions, including a six-month account freeze. However, the CBN quickly addressed these rumors, announcing via a social media post on X that the circular was a fabrication and not issued by their office.

Separately, the Economic and Financial Crimes Commission (EFCC) took action by freezing over 300 accounts linked to illicit forex activities on a P2P platform. The EFCC's chairman explained that this was part of efforts to clamp down on schemes detrimental to the country’s economic safety, noting that these unauthorized transactions surpassed those of known entities like Binance. These developments underscore Nigeria's financial sector's complexities and ongoing scrutiny, especially concerning cryptocurrencies and foreign exchange regulations.