Nigerian banks tracking customer accounts for crypto trading

In early 2018, the Central Bank of Nigeria (CBN) announced that it would be tracking accounts for crypto trading. The move was a precautionary measure in order to curb any illegal activities with cryptocurrency. Banks have been working on their own software solutions that can detect unusual transactions and flag them so they don’t go through the system…

The Bank of Nigeria (BoN) has warned people trading in cryptocurrency to be cautious because their bank accounts may become the target for hackers. The central bank said it is monitoring transactions involving cryptocurrencies and will take appropriate action if necessary.

It is not legal to trade cryptocurrencies in Nigeria, as Nigerian banks are tracking customer accounts for crypto trading.

Commercial banks in Nigeria have started checking accounts that look to be used for cryptocurrency trading.

The move comes in response to a directive from the Central Bank of Nigeria (CBN) ordering all commercial banks to freeze the accounts of at least two people involved in cryptocurrency trading.

An internal note at one of the banks told personnel to start monitoring accounts with substantial transaction volumes or those suspected of being used for cryptocurrency trading, according to a report by local magazine Leadership. According to Leadership, the message reads:

“We would like to underline that the CBN is closely monitoring non-compliance with the mandate on the closure of all cryptocurrency accounts as a high-impact regulatory consequence.” In light of the above, all employees are instructed to identify companies dealing in cryptocurrencies or running cryptocurrency exchanges inside their systems and ensure that such accounts are terminated as soon as possible.”

Employees who purposefully fail to reveal an account’s participation in bitcoin trading will be punished, according to the memo. According to internal correspondence, all employees are now obliged to engage in monitoring accounts, transactions, and customers to ensure that the bank is completely compliance with CBN standards.

Accounts of fintech enterprises with a high number of daily transactions but no payments license, as well as those having cryptocurrency in their memorandum or declaration of business, might be highlighted.

Personal accounts with huge multi-day inflow and outflow, as well as small businesses with higher-than-expected daily revenues, will be identified. Accounts that receive a large sum of money from a number of payees and make frequent payments to a number of beneficiaries will also be scrutinized. 

They are now persecuting young individuals who believe in Crypto after E-Naira died on arrival! My Naira account, which I use to assist my Nigerian family, was banned by the confused CBN yesterday. Once more businesses begin to accept cryptocurrency, the game is over for them.

November 10, 2021 — BitcoinChief (TATCOIN TRADER) (@gaiuschibueze)

The CBN alleges in the letter, which went viral on social media less than a week after the debut of the e-naira, that the accounts are being used for cryptocurrency trading, in violation of the central bank’s February 5 decree.

Senator Ineynyen, the president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), criticized the CBN’s decision as illegitimate and unfair in a statement on Twitter. Only the Nigerian legislature, according to Ineynyen, has the jurisdiction to monitor Bitcoin regulation.

This is unlawful and unjustifiably discriminatory. This is tyranny, not regulation. What happened to @nassnigeria? The actions of @cenbank are illegal. This needs to come to an end. We do not live in a lawless society. Cryptocurrency can only be made illegal by the National Assembly. pic.twitter.com/VjxmhjR6g6 #endcbnoppression

November 8, 2021 — Senator Ihenyen (@SenatorIhenyen)

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