CBN Implements Stringent Measures on Crypto Transactions Amid Financial Reforms

25 April 2024

Nigeria’s Central Bank has escalated its efforts to regulate the cryptocurrency market by focusing on major exchanges. Financial institutions must now implement new measures to track and limit crypto activities.

The Central Bank of Nigeria (CBN) has intensified its crackdown on the cryptocurrency sector, focusing on major global exchanges including Bybit, KuCoin, OKX, and Binance. In a recent directive, the CBN has mandated that financial institutions in Nigeria closely monitor and report transactions involving these platforms.

The new regulations require Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), and Other Financial Institutions (OFIs) to flag and restrict accounts engaged in cryptocurrency activities. Specifically, the CBN has introduced a post-no-debit (PND) order lasting six months for affected accounts and warned of severe penalties for non-compliance.

In addition, the CBN has made it clear that individuals or entities involved in clandestine trading or facilitating the sale of USDT (Tether) will face arrest. This move is part of a broader financial reform initiative aimed at addressing economic disturbances and improving oversight in Nigeria’s financial sector.

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Sophia Mitchell
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From the sun-soaked city of Sydney, Australia, Sophia Grace Mitchell is a distinguished business journalist. Armed with a Bachelor's in Business Journalism from the University of Sydney, Sophia has contributed significantly as a Business Reporter at the Australian Financial Review and a Lead Analyst at Crypto News Today. Her passions extend from fintech innovation to scuba diving and culinary arts.
Lucas Reynolds
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Toronto-born Lucas Benjamin Reynolds, with a Bachelor's in Economics from the University of Toronto, is a respected financial analyst. Lucas has contributed significantly as a Financial Analyst at the Canadian Economic Review and a Lead Writer at Crypto Trends Magazine. His interests span behavioral economics, skiing, jazz music, and environmental activism.
Elena Petrova
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Elena Petrova, born in Moscow, Russia, is a distinguished financial economist with a PhD from Moscow State University. Elena's impactful career includes roles as the Chief Economist at the Russian Financial Times and a Contributing Analyst at Crypto Insights Today. Her diverse interests include international finance, art history, hiking, and Russian literature.

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