Nigerian bank tracks customer accounts for encrypted transactions

In Nigeria, commercial banks have begun to monitor accounts that appear to be used for cryptocurrency transactions.

The action was in response to an order from the Central Bank of Nigeria (CBN) Require all commercial banks Freeze accounts belonging to at least two individuals engaged in cryptocurrency transactions.

According to a report According to local publication leaders, an internal memo from one of the banks instructed employees to start monitoring accounts with high transaction volumes or accounts believed to be used for cryptocurrency transactions. According to the leadership, the content of the memo is as follows:

“We wish to reiterate that CBN is strictly monitoring non-compliance with instructions regarding the closure of all accounts involving cryptocurrencies in order to impose high-impact regulatory sanctions. In view of the above, we hereby recommend all employees to identify those who conduct or operate cryptocurrency exchanges within its system. Entities and ensure that such accounts are closed immediately.”

The document emphasizes that employees who deliberately neglect to disclose their accounts to participate in cryptocurrency transactions will be punished. According to internal communication, all employees must now participate in monitoring accounts, transactions and customers to ensure that the bank fully complies with CBN requirements.

Accounts that may be flagged include those fintech companies that conduct a large number of daily transactions without a payment license, or any accounts that include cryptocurrency in their memos or business expressions.

Individual accounts with large inflows and outflows over multiple days, and small companies whose daily sales exceed the expected level, will also be warned. In addition, accounts that receive large amounts of funds from multiple beneficiaries and pay large amounts to multiple beneficiaries will also be suspected.

CBN claimed in this letter that the letter began to circulate on social media less than a week after the incident. Launch of electronic naira, These accounts were used for cryptocurrency transactions and therefore violated the central bank’s order on February 5.

On Twitter, Senator Ineynyen, who leads the stakeholders of the Blockchain Technology Association of Nigeria (SIBAN), criticized CBN’s decision as illegal and unfair. According to Ineynyen, only the Nigerian legislature has the authority to oversee Bitcoin regulation.