Breaking: Commercial banks in Nigeria have started monitoring customer accounts for cryptocurrency trading. This follows increased scrutiny of the digital asset space and a directive from the Central Bank of Nigeria (CBN).

The action is in response to an order from the Central Bank of Nigeria (CBN) demanding all commercial banks freeze accounts belonging to at least two individuals suspected of cryptocurrency trading, according to sources within the banking sector. This move signals a renewed effort by the CBN to enforce its regulations regarding cryptocurrency activities within the country.

This directive from the Central Bank of Nigeria (CBN) came after it re-emphasized its stance against cryptocurrency trading. As a result, bank accounts identified as belonging to cryptocurrency exchanges, custodians or used in facilitating cryptocurrency transactions were closed. From a practical standpoint, the CBN aims to prevent the use of Nigerian banks for activities deemed illicit or posing a risk to the financial system.

The implications of this monitoring are significant for Nigerian cryptocurrency traders and investors. Banks are now implementing more stringent measures to identify and report suspicious transactions potentially linked to cryptocurrency trading. This heightened surveillance is likely to affect the ease and accessibility of buying and selling cryptocurrencies using Nigerian bank accounts.

While the CBN's intention is to protect the financial system, critics argue that this measure could stifle innovation and discourage legitimate cryptocurrency activities. The future of cryptocurrency trading in Nigeria remains uncertain as the CBN continues to exert its regulatory control over the financial sector.

Stay tuned for further updates as this situation unfolds. We will continue to provide comprehensive coverage of the evolving regulatory landscape surrounding cryptocurrency in Nigeria.