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Nigerian Central Bank Disavows Letter Directing Banks to Sever Ties With Crypto Exchanges – Africa Bitcoin News

The Central Bank of Nigeria (CBN) has disavowed a letter that allegedly instructed financial institutions to sever ties with four global cryptocurrency exchanges. The central bank stated that the letter did not originate from its office and recommended that individuals interested in “authentic updates” refer to its official website.

Fake Content

The Central Bank of Nigeria (CBN) has dismissed as “fake content” a letter allegedly warning local financial institutions against dealing with four global crypto exchanges. The letter stated that financial institutions that defy the directive to cut off the four crypto exchanges — Binance, Bybit, Kucoin, and Okx — could face severe regulatory sanctions.

However, hours after the letter bearing its logo began circulating, the CBN insisted in a social media post that the information contained in the April 23 letter did not originate from the CBN. The central bank concluded its post by directing members of the Nigerian public interested in “authentic updates” to visit its official website.

While there is no mention of the letter or its contents on its official website, the release and the CBN’s swift rejection of a letter penned by the director of the banking supervision department have caused anxiety among Nigerian crypto players. One Nigeria crypto industry insider told Bitcoin.com News that the back-and-forth has left both industry participants and investors confused.

Still, some observers believe the letter may have been authentic, but the CBN hierarchy felt it had been prematurely issued given the stakes. To support their assertion, the observers point to an instance when a circular rescinding the CBN 2021 directive began circulating on social media before the central bank made it official.

Several media houses, both local and foreign, reported on this in late December 2023, with the CBN officially releasing the same circular in early January 2024.

Mixed Reactions to CBN’s Swift Dismissal of Letter

As reported by Bitcoin.com News since February, the Nigerian government and CBN have cracked down on global crypto exchange platforms, which are accused of fueling the local currency’s rapid depreciation. In addition, the Nigerian government instructed the country’s telecoms regulator to block access to the websites of Binance, Coinbase, and Kraken.

So far, Binance has borne the brunt of the Nigerian government’s angst against global crypto exchanges. This can be evidenced by the tax evasion charges being leveled against Binance as well as the continued detention of the crypto exchange’s employee Tigran Gambaryan.

Meanwhile, on the social media platform X, reaction to the CBN’s dismissal of the letter has been mixed. For instance, one user named Omobola welcomed the central bank’s swift rejection of the letter but urged it to “bring back the Binance P2P in the country because the benefits are much more than any other platforms.”

However, others were seemingly taken aback by the CBN’s rejection of the letter and its contents, which highlighted concerns about the activities of some of the crypto exchanges.

What do you think of the CBN’s swift rejection of the fake content letter? Share your thoughts in the comments section below.

Source: Bitcoin

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