Just a few days after the launch of the e-naira cryptocurrency, the Central Bank of Nigeria is now increasing the pressure on cryptocurrency traders.

Bank Employees Are Warned

In a memo sent to staff by Bitcoin.com News FCMB, Nigeria’s largest bank, warned its employees not to help cryptocurrency traders. The bank reveals that any account that is found to be in violation of the CBN directive will be closed.

FCMB also stated that employees who willfully conceal the existence of a cryptocurrency trading account will be punished. The memo states that all FCMB employees will now be required to monitor accounts, transactions and customers to ensure compliance with the CBN directive.

Meanwhile, in order to help employees easily identify accounts that are used by cryptocurrency traders, FCMB has produced and shared a list of 20 red flags to look out for. These red flags include accounts that receive large daily inflows from many payees and accounts that operate as bureaux de changer without a license from CBN.

CBN Increases the Pressure

A letter purportedly authored by the CBN directs all banks that accounts belonging to Nnamdi Francis Okereke or Nwaorgu Kingley Chibuzor should be closed. This is another indication of the CBN’s increasing pressure. The letter circulated on social media only a week after e-naira launched. It claims that the accounts were being used to trade in cryptocurrency, violating the February 5 directive.

The same letter asks banks to close TVS Hallmark Service accounts and to transfer funds to a suspension account.

Reacting to these reports in a tweet, Senator Inhenyen, who is the president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), called the CBN’s action “unduly discriminatory and unconstitutional.” Inhenyen argues that only the Nigerian legislature has the authority to act against cryptocurrencies. He explained:

” This is not regulation, but oppression. Where is the National Assembly of Nigeria, you ask? The central bank’s actions are ultra vires. This must stop. This is not a lawless nation. Only the National Assembly can illegalize cryptocurrency.”

What do you think is behind the CBN’s renewed efforts to block cryptocurrency traders? Let us know your thoughts in the comments below.

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