Saturday, December 4, 2021

Nigerian Central Bank Intensifying Fight Against Cryptocurrency Traders – Emerging Markets Bitcoin News

- Advertisement -
- Advertisement -
- Advertisement -


Just a few days after launching the e-naira digital currency, the Central Bank of Nigeria (CBN) is now reportedly ramping up the pressure against cryptocurrency traders.

Bank Employees Warned

In a memo to its staff seen by Bitcoin.com News, one of Nigeria’s leading banks, FCMB, warns its employees against aiding cryptocurrency traders. The bank reveals that any account that is found to be in violation of the CBN directive will be closed.

In addition, FCMB said employees that willfully fail to disclose the existence of an account that is involved in cryptocurrency trading will also be punished. According to the memo, all FCMB employees are now expected to be involved in the monitoring of accounts, transactions, and customers in order to ensure the bank is fully complying with the CBN directive.

Meanwhile, in order to help employees easily identify accounts that are used by cryptocurrency traders, FCMB has produced and shared a list of 20 red flags to look out for. Some of these red flags include bank accounts that receive high daily inflows from a huge number of payees, and accounts operating as bureaux de change without a license from the CBN.

CBN Ratcheting Up the Pressure

In another sign that the CBN is ratcheting up the pressure, a letter supposedly authored by the central bank directs all banks to close accounts belonging to Nnamdi Francis Okereke and Nwaorgu Kingsley Chibuzor. In the letter, which began circulating on social media just over a week after the e-naira launch, the CBN claims the accounts are being used for cryptocurrency trading and this violates the central bank’s February 5 directive.

The same letter similarly asks banks to close accounts belonging to TVS Hallmark Service and to place the funds in a suspension account.

Nigerian Central Bank Intensifying Fight Against Cryptocurrency Traders

Reacting to these reports in a tweet, Senator Inhenyen, who is the president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), called the CBN’s action “unduly discriminatory and unconstitutional.” Inhenyen argues that only the Nigerian legislature has the authority to act against cryptocurrencies. He explained:

“This is not regulation but oppression. Where is the National Assembly of Nigeria? The central bank’s action is ultra vires. This has to stop. We are not in a lawless country. Only the National Assembly can illegalize cryptocurrency.”

What do you think is behind the CBN’s renewed efforts to block cryptocurrency traders? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Red Confidential

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -

More from the blog

Elizabeth Warren Queries Bitcoin Mining Operation, US Senator Says Crypto Miners Raise Environmental Concerns – Bitcoin News

Senator Elizabeth Warren has written a letter to the CEO of the New York bitcoin mining agency Greenidge Generation, Jeff Kirt, asking for...

Security Focused DeFi Project EverRise Now Live on 3 Blockchains, Staking Introduced – Sponsored Bitcoin News

sponsored Originally launched on June 15th, 2021, EverRise is a blockchain expertise firm that gives bridging and safety options throughout a number of...

BCH Ecosystem Gains New NFT and Dex Platforms, TVL in Smartbch Defi Climbs 180% in 30 Days – Defi Bitcoin News

During the previous couple of months, the Smartbch challenge has swelled with quite a few initiatives, customized tokens, and the total-value locked (TVL)...

Blockchain.com Reveals Non-Fungible Token Marketplace and NFT Explorer – Bitcoin News

The crypto agency Blockchain.com is becoming a member of the slew of digital foreign money exchanges which have launched non-fungible token (NFT) marketplaces...