Nigeria Directs Entities to Identify Those Dealing Crypto With Bybit, KuCoin, OKX and Binance

On Tuesday, the Central Bank of Nigeria instructed financial institutions to locate any individuals or businesses dealing with or associated with Bybit, KuCoin, OKX, and Binance, based on information obtained from a letter reviewed by CoinDesk.

In simpler terms, the letter warned and reminded Deposit Money Banks, Non-Bank Financial Institutions, Other Financial Institutions, and the general public that it’s against the rules to engage in cryptocurrency transactions or help process payments for cryptocurrency exchanges.

More recently, Binance found itself in controversy with Nigeria’s authorities over allegations of facilitating naira depreciation through speculative activities. This dispute gained global attention when Nigerian officials summoned two Binance executives, detained them, and one managed to elude arrest.

The regulatory body recommends that financial institutions prevent access to certain accounts for a period of six months by placing them under “Posted No Debit” status. Failure to comply with this requirement may result in significant penalties imposed by the regulators.

Significantly, the letter stated that anyone clandestinely dealing with crypto platforms, specifically exchanging USDT unlawfully, would be apprehended. The Central Bank of Nigeria has a responsibility to probe economic issues within the country.

Notably, the latest directive failed to name any native crypto trading platforms, possibly due to several Nigerian crypto businesses, including Flincap, diligently working towards obtaining necessary licenses. (Nathaniel Luz, CEO of Flincap)