The Central Bank of Nigeria addresses rumors about banning P2P trading accounts and discusses regulation, while Binance faces more scrutiny and legal issues.
Following recent rumors that circulated regarding a purported directive to identify and restrict transactions with cryptocurrency exchanges, the Central Bank of Nigeria (CBN) promptly responded.
In opposition to these allegations, the CBN affirmed that their institution had not issued any such directive.
They strongly advise individuals to consult the official CBN website at cbn.gov.ng for reliable updates.
Clarifying the Regulatory Landscape
Despite the CBN’s efforts to dispel falsehoods, there continue to be ambiguities surrounding the regulatory framework that oversees cryptocurrency exchanges in Nigeria.
Complicating matters further, the circulation of a forged circular implied that regulated financial institutions were out of the loop and could not facilitate payments for cryptocurrency exchanges or engage in cryptocurrency transactions.
If verified, this alleged directive would have represented a substantial policy change, contradicting a previous ban revoked by the Central Bank of Nigeria in December 2023, which permitted financial institutions to facilitate transactions with cryptocurrency exchanges.
Moreover, recent disclosures concerning the movement of funds via platforms such as Binance have sparked concerns regarding the oversight and transparency of cryptocurrency transactions.
Olayemi Cardoso, the CBN’s head, disclosed that an astounding $26 billion traversed Binance Nigeria in 2023 from unidentified users and sources, raising red flags regarding possible money laundering and illicit activities.
Binance’s Challenges in Nigeria
Due to increased regulatory scrutiny, Nigeria has become a turbulent environment for Binance, the preeminent cryptocurrency exchange globally.
Detainment of Binance executive Tigran Gambaryan in Nigeria resulted from the CBN’s apprehensions regarding dubious financial transactions, which cast a shadow over the exchange’s operations.
Gambaryan, based in the United States, has been arrested on suspicion of money laundering after a consultation with Nigerian authorities concerning regulatory compliance matters.
In addition, Nadeem Anjarwalla, another executive of Binance, managed to evade custody and was subsequently apprehended in Kenya, where he may be extradited.
These occurrences underscore the difficulties cryptocurrency exchanges encounter when attempting to adhere to regulatory frameworks and compliance obligations; they also underscore the dynamic and intricate character of the cryptocurrency environment in Nigeria.
