Nigerian Central Bank Intensifies Fight Against Cryptocurrency Traders – Emerging Markets

Just days after launching the digital currency E-Naira, the Central Bank of Nigeria (CBN) is now reportedly increasing pressure on cryptocurrency traders.

Bank employees warned

In a memo to its employees seen by Bitcoin.com News, one of Nigeria's leading banks, FCMB, is warning its employees against assisting cryptocurrency traders. The bank announces that any account found to be in violation of the CBN violates directive will be closed.

Additionally, FCMB said that employees who willfully fail to disclose the existence of an account involved in cryptocurrency trading will also be penalized. According to the memo, all FCMB employees are now expected to be involved in monitoring accounts, transactions and customers to ensure the bank is in full compliance with the CBN directive.

To help employees easily identify accounts used by cryptocurrency traders, FCMB has created and shared a list of 20 red flags to watch out for. Some of these red flags include bank accounts that receive high daily inflows from a large number of payees and accounts that operate as exchange offices without a license from the CBN.

CBN increases the pressure

In another sign that the CBN is increasing pressure, a letter purportedly written by the central bank directs all banks to close accounts of Nnamdi Francis Okereke and Nwaorgu Kingsley Chibuzor. In the letter, which began circulating on social media just over a week after e-naira was launched, the CBN claims that the accounts are being used for cryptocurrency trading and this is in violation of the central bank's February 5 directive.

The same letter similarly asked banks to close TVS Hallmark Service accounts and place the funds in a blocked account.

Response 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 crack down on cryptocurrencies. He explained:

"This is not regulation, it is oppression. Where is the National Assembly of Nigeria? The central bank's action is ultra vires. This must stop. We are not in a lawless country. Only the National Assembly can illegalize cryptocurrencies."

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.

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