Nigeria’s central bank clarifies: No order has been issued to freeze cryptocurrency trading accounts

Recently, news that the Central Bank of Nigeria (CBN) ordered the freezing of all bank accounts related to cryptocurrency transactions was widely circulated on social media and attracted widespread market attention. The rumor claims that the CBN issued a directive requiring banks to implement a six-month “no debit (PND)” measure on all accounts involved in cryptocurrency transactions, specifically mentioning exchanges such as Bybit, KuCoin, OKX, and Binance platforms, noting that these platforms are not authorized to operate in Nigeria.

In response, CBN quickly responded through its official channels and denied these reports. In a statement, the CBN stressed that no formal order calling for the freezing of accounts related to cryptocurrency trading had ever been issued on its official website and urged the public to rely only on official channels for information.

Although the CBN clarified rumors of frozen accounts, the bank remains cautious on cryptocurrency trading activities. The CBN said it will take regulatory action against individuals and entities that use unauthorized platforms or engage in peer-to-peer (P2P) cryptocurrency transactions, particularly those involving Tether (USDT).

The incident comes as Nigeria grapples with inflation and the depreciation of its currency. The government has previously taken crackdowns on cryptocurrency trading websites suspected of manipulating exchange rates.

Notably, Binance, one of the world’s largest cryptocurrency exchanges, has received special attention for its operations in Nigeria. Binance and its executives face charges of tax evasion in the country, and the relevant trial proceedings have been postponed to May 17 due to legal complications. The CBN had previously expressed concerns about “suspicious financial transactions” through Binance Nigeria in 2023, claiming that huge amounts of money were flowing into the country through the platform.

Additionally, Binance’s U.S. executive Tigran Gambaryan was recently arrested in Nigeria on money laundering charges, while another Binance executive, Nadeem Anjarwalla, is currently facing extradition proceedings in Kenya after escaping detention.

This clarification by the CBN is of great significance for stabilizing market sentiment and safeguarding the interests of investors. It also reminds the public and investors to remain vigilant when it comes to cryptocurrency transactions and conduct transactions through official and legal channels.

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