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The Central Bank of Nigeria (CBN) has issued a new directive requiring all banks and financial institutions in the country to identify individuals or entities engaging in transactions with cryptocurrency exchanges.

The circular also requires the bank to place their accounts under a Post No Debit (PND) instruction for a period of six months.

Key points:

A PND instruction is a directive issued by a bank or financial institution that restricts certain transactions on a customers account. A PND instruction prohibits the account holder from making debit transactions.

Also read: Binance Founder Changpeng Zhao Should Face 3-Year Prison Sentence: DOJ

The CBNs decision to target unlicensed crypto exchanges comes as a surprise. This is because the bank lifted a comprehensive ban on banks engaging with digital currencies in December 2023.

The recent devaluation of the naira and the subsequent inflation rate of 29.9% appear to have prompted the government to shift its attention to platforms offering cryptocurrency services. The CBN has even blocked websites associated with crypto trading.

Also checkout:Crypto Industry Groups Sue SEC Over Expanded Dealer Definition

Binance is also facing ongoing scrutiny from the Nigerian government. The CBNs latest directive has raised questions about the future of cryptocurrency in Nigeria.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Milk Road Writer

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Original post:

Central Bank of Nigeria To Freeze Bank Accounts Linked With Binance, Bybit, KuCoin - Milk Road