Just-In: Central Bank Of Nigeria Debunks Rumors Banning Accounts Of P2P Traders
Highlights
- The CBN refutes rumors of banning P2P trader accounts and emphasizes reliance on authentic updates from its official website.
- Uncertainties persist regarding cryptocurrency regulations despite the CBN's clarification, with concerns raised about transparency and oversight.
- Binance faces regulatory challenges in Nigeria, with executives detained and facing charges related to money laundering amid heightened scrutiny from authorities.
The Central Bank of Nigeria (CBN) has swiftly responded to recent rumors circulating about a purported directive aimed at identifying and restricting transactions with cryptocurrency exchanges. Contrary to these rumors, the CBN clarified that no such directive originated from their institution. They urge individuals to rely on authentic updates by visiting the official CBN website at cbn.gov.ng.
Clarifying the Regulatory Landscape
Despite the debunking of rumors by the CBN, uncertainties persist regarding the regulatory environment governing cryptocurrency exchanges in Nigeria. The dissemination of a fake circular added to the confusion, suggesting that regulated financial institutions would be prohibited from engaging with crypto or facilitating payments for crypto exchanges.
This purported directive, if true, would have marked a significant shift in policy, contradicting a previous ban lifted by the Central Bank of Nigeria in December 2023, which allowed banks to facilitate transactions with crypto exchanges. Furthermore, concerns have been raised regarding the transparency and oversight of cryptocurrency transactions, particularly in light of recent revelations about financial flows through platforms like Binance.
The CBN’s head, Olayemi Cardoso, revealed that a staggering $26 billion had passed through Binance Nigeria in 2023 from unidentified sources and users, raising red flags about potential illicit activities and money laundering.
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Challenges Faced by Binance in Nigeria
In the wake of heightened regulatory scrutiny, Binance, the world’s largest cryptocurrency exchange, finds itself navigating choppy waters in Nigeria. The CBN’s concerns about suspicious financial transactions have cast a shadow over the exchange’s operations, leading to the detention of Binance executive Tigran Gambaryan in Nigeria.
Gambaryan, who is based in the United States, faces charges related to money laundering following a meeting with Nigerian officials to address regulatory compliance issues. Furthermore, another Binance executive, Nadeem Anjarwalla, managed to evade custody and was subsequently tracked down in Kenya, where he faces potential extradition.
These developments show the challenges faced by cryptocurrency exchanges in navigating regulatory frameworks and compliance requirements, highlighting the complex and evolving nature of the crypto landscape in Nigeria.
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