Nigerian Authorities Crack Down on Crypto Trading Platforms
Nigerian authorities are intensifying their crackdown on crypto trading, specifically targeting peer-to-peer (P2P) platforms such as OKX, Binance, KuCoin, and Bybit. The Central Bank of Nigeria recently issued a circular instructing financial institutions in the country to identify individuals or entities transacting with these exchanges and impose a six-month Post No Debit (PND) instruction on their accounts.
The CBN stated that the mentioned platforms are operating without a license in Nigeria and are currently under investigation. It warned that those who fail to comply with the directive will face severe regulatory sanctions. Additionally, the bank issued a warning that individuals involved in the illegal buying and selling of USDT would be subject to arrest.
Regulated financial entities in Nigeria were reminded by the CBN that they are prohibited from dealing in cryptocurrencies or facilitating payments for crypto exchanges. Meanwhile, business journalist Olumide Adesina highlighted that the CBN’s official stance is that only entities regulated by the Nigerian Securities and Exchange Commission (SEC) can work with banks in the crypto market.
In a recent press briefing, Ola Olukayode, chairman of the Economic and Financial Crimes Commission (EFFC), revealed that transactions on P2P platforms like KuCoin were exacerbating the country’s foreign exchange challenges. The anti-graft agency has frozen approximately 300 suspected illegal forex accounts operating on P2P platforms, with over $15 billion passing through one platform in the last year.
These actions by the Nigerian government come as part of efforts to stabilize the foreign exchange market. Initially, the weak value of the Nigerian Naira against the US Dollar was attributed to speculative activities by currency traders on the crypto exchange Binance. Although Binance has denied these allegations, the exchange and two of its executives are currently on trial for tax evasion and money laundering.
Binance has stated that it is cooperating with authorities and has called for the release of its detained employees.
