CBN Speaks on Alleged Ban of Bybit, Kucoin, Other Cryptocurrency Platforms After Sanctioning Binance

• The CBN has branded claims circulating on social media about its purported ban on cryptocurrency platforms as fake
• The fake circular purported that regulated institutions are prohibited from involvement in cryptocurrencies
• It also stated that anyone found dealing in crypto transactions or buying USDT illegally would be arrested

The Central Bank of Nigeria has disowned a letter purportedly addressed to deposit money banks, non-bank financial institutions, other financial institutions and the general public regarding the risk associated with cryptocurrencies.

In a post via its social media handle, the apex bank asked the public to disregard the claim.

Fake Content

According to the content, members of the public and institutions are to stay away from crypto transactions of any sort as they are prohibited.

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It stated:

“The Central Bank of Nigeria’s (CBN) circular of April 23 2024 ref FPR/DIR/GEN/CIR/06/010 which cautioned Deposit Money Bank (DMBs), Non-bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs) and members of the public on the risk associated with transactions in crpto currency, refers."

Referencing earlier regulatory directives, it stated that bank institutions involved in crypto dealing are prohibited from such dealings.

“Further to earlier mandatory directive on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited."

The letter stated that the listed cryptocurrency platform (Bybit, Kucoin, OKX and Binance) and the remaining platform trading NGN currency call (P2P) are not licenced to operate in Nigeria as they are being investigated by the EFCC.

It added that all suspected agents and call merchants in the platforms buying and selling USDT illegally would be apprehended.

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Recall that Binance earlier announced that it was discontinuing its Nigerian naira services.

Binance also encouraged users to withdraw (Nigerian naira) NGN, trade their NGN assets or convert NGN into crypto before the discontinuation of these NGN services.

NCC orders MTN, Airtel, Glo, others to block Binance

The Nigerian Communications Commission (NCC) earlier ordered telecom companies to restrict access to Binance and other cryptocurrency companies' websites.

The telcos received a directive from the commission on Wednesday, February 21, a reputable source in the telecom sector revealed.

Earlier, Legit.ng reported that the Nigerian government is contemplating blocking the online platforms of Binance and other cryptocurrency companies to prevent alleged manipulation of the foreign exchange market and illicit financial transfers.

Source: Legit.ng