Nigeria's Central Bank Retreats on Crypto Stance?
The Central Bank of Nigeria (CBN) was compelled to refute a report that claimed it had issued an order mandating that all banks and financial organizations identify the people or organizations transacting with cryptocurrency exchanges and make sure those accounts are placed on Post No Debit (PND) for a period of six months.
The instruction Post No Debit (PND) is a directive that is issued by a financial institution or a bank to restrict certain transactions on an account of customer.
The holder of the account is prohibited from making debit transactions which means they cannot cash out or make payments using the effected account when PND instructions are in place.
Confusion took place when central bank denied the story on X and then deleting their denial. The allegations were indeed false, they claimed some hours later.
According to the bank, it would get a hold of anyone it thinks is buying and selling Tether (USDT) on the listed platforms illegally, especially those using the methods of peer-to-peer (P2P).
The alleged circular further said that it is forbidden for regulated financial institutions to deal in cryptocurrency or to process payments for cryptocurrency exchanges. However, this refutes the earlier ban which was lifted in December 2023, permitting banks to facilitate cryptocurrency exchange transactions.
The ban was lifted by the central bank nearly years after enforcing a comprehensive ban on banks engaging with digital currencies.
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