CBN refuses to issue instructions to cryptocurrency exchanges
Key Takeaways
- Reports that the Central Bank of Nigeria (CBN) ordered banks to monitor cryptocurrency exchange transactions have been debunked.
- The CBN confirmed that the documents circulated did not originate from its office and advised that information be verified only through official channels.
- The credibility of the false letter has been affected by the ongoing legal dispute between Nigerian authorities and cryptocurrency exchanges.
There are recent reports claiming that the Central Bank of Nigeria (CBN) has instructed financial institutions to monitor transactions with cryptocurrency exchanges such as Binance, Bybit, KuCoin, and OKX. It turned out to be false.
The misinformation is based on a letter circulated to media outlets confirmed by the CBN. It’s not from the office.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
The document directs depository banks (DMBs), non-banking financial institutions (NBFIs), other financial institutions (OFIs) and the public to identify and monitor institutions trading on major cryptocurrency platforms, with any violations subject to severe penalties. threatened to do so.
However, the CBN officially denied these claims. The information was fake and the public was urged to rely only on official communications directly delivered through channels.
This episode highlights the importance of evaluating information and relying on trustworthy sources.
However, it is understandable why such documents in particular seem credible. Legal dispute situation between cryptocurrency exchange and Nigerian authorities, This is especially relevant to Binance.
Binance has been accused of facilitating illicit financial flows and manipulating the Nigerian naira.
The incident took a turn when Nigerian authorities invited and detained two Binance executives. One of them escaped custody and was later found in Kenya, where he is awaiting possible extradition to Nigeria. Meanwhile, another executive remains in Nigeria fighting money laundering charges.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst who delivers data-driven and fact-based content as well as speaking to both Web3 natives and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
