The bank accounts of users of Nigerian crypto exchanges could once again be frozen. Indeed, the Central Bank of Nigeria has asked the country’s banks to identify individuals transacting with crypto exchanges and place their bank accounts on “Post No Debit” (PND) for a period of six months. As a result, these accounts cannot withdraw funds or make payments.
Crypto ecosystem suffers major blow from Central Bank of Nigeria
Nigeria is stepping up its crusade against crypto exchanges. In a directive dated April 23, 2024, Nigeria’s central bank reminded the country’s banking and financial institutions that the facilitation of cryptocurrency transactions is scrupulously prohibited. To this end, the Central Bank of Nigeria is inviting the country’s banks to identify users of crypto exchanges and then put their bank accounts on “Post No Debit” status for a period of six months.
As a reminder, Post No Debit (PND) involves the restriction of certain transactions on a customer’s account. If this PND instruction is implemented, the targeted bank accounts will not be able to carry out debit transactions. As a result, it will be difficult for account holders to withdraw funds or make payments.
Nigeria goes more and more radical in its fight against crypto
Long before Nigeria targeted crypto users, the country was fiercely attacking crypto exchanges as part of its crusade against the ecosystem. The exchange Binance was one of the targets of the Nigerian authorities, who accused him of manipulating the value of the national currency. Two platform executives were recently arrested while attempting to revive Binance in Nigeria. One of them managed to escape while her companion is still in custody despite Binance’s complaints.
The exchange is also exposed to heavy fines. Last March, a Nigerian authority announced that the country would demand Binance a $10 billion fine before reverse.
Nigeria has attacked the ecosystem several times. In the run-up to the launch of its CBDC in 2021, the country blocked crypto users’ bank accounts. However, the expected results were not forthcoming. Adoption of the Nigerian CBDC has remained marginal despite incentives from the authorities. On the other hand, crypto adoption has continued to grow despite the restrictions. Nigeria’s current crusade against crypto could meet with the same resounding failure…
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
