The Central Bank of Nigeria (CBN) has quickly addressed rumors spreading about an alleged directive from their office regarding identifying and limiting cryptocurrency transactions with exchanges. However, these rumors are unfounded as no such instruction came from the CBN. The bank advises the public to only trust information from their official website at cbn.gov.ng for accurate updates.
Clarifying the Regulatory Landscape
Although the Central Bank of Nigeria (CBN) has refuted rumors about new regulations on cryptocurrency exchanges, there remains uncertainty regarding the specific rules governing these platforms in Nigeria. The circulation of a false CBN directive intensified the confusion, falsely claiming that regulated financial institutions would be barred from dealing with crypto or processing transactions for crypto exchanges.
If accurate, this alleged new rule would signify a major policy change, going against a prior restriction lifted in December 2023 that permitted banks to handle crypto exchange transactions. However, there are worries about the clarity and supervision of cryptocurrency transactions due to recent disclosures about financial activities on platforms such as Binance.
In the year 2023, an astonishing $26 billion flowed through Binance’s Nigerian branch, as disclosed by its leader, Olayemi Cardoso, originating from untraced sources and users. This revelation has sparked concerns about possible illicit dealings and money laundering.
Challenges Faced by Binance in Nigeria
Due to increased regulatory investigation, Binance, the biggest cryptocurrency exchange globally, faces challenges in Nigeria. The Central Bank of Nigeria (CBN) has raised concerns about questionable financial dealings, causing uncertainty for Binance’s business. As a result, Binance executive Tigran Gambaryan was arrested in Nigeria.
Gambaryan, a resident of the US, is under investigation for money laundering allegations after holding talks with Nigerian authorities over regulatory concerns. Additionally, another Binance executive, Nadeem Anjarwalla, eluded capture and was later found in Kenya, where he may be subjected to extradition proceedings.
In simpler terms, these new events demonstrate the difficulties cryptocurrency markets in Nigeria encounter when trying to follow laws and regulations, underscoring the intricate and continuously changing environment of the crypto market in the country.
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2024-04-24 14:45