Events in Nigeria developed as follows:

Leading cryptocurrency exchange Binance, along with other exchanges operating in the country, faced a directive. This directive required financial institutions to identify individuals or entities transacting or doing business with Binance, Bybit, KuCoin and OKX. However, the interesting part is that the Central Bank of Nigeria (CBN) has denied issuing this directive.

This caused confusion in the crypto market. While some thought that the directive could be fake, others argued that this was an indication of the CBN’s concerns about cryptocurrencies.

Cryptocurrency market news source CoinDesk obtained the directive in question. According to CoinDesk, the document was addressed to deposit money banks, non-banking financial institutions, other financial institutions and the public in the country.

The document warned organizations that it was prohibited to transact with cryptocurrencies or facilitate payments for cryptocurrency exchanges. In addition, financial institutions were asked to “suspend the relevant accounts for 6 months”. It was stated that failure to comply with the directive would result in serious sanctions.

After CoinDesk’s report, CBN issued a statement rejecting the directive. However, this statement was later deleted and republished via X. This reinforced the impression that the CBN’s stance on the issue and its policy on cryptocurrencies were not clear.

The Central Bank of Nigeria has a cautious attitude towards cryptocurrencies. In February 2021, the CBN had issued a directive prohibiting banks from transacting in cryptocurrencies or facilitating payments for cryptocurrency exchanges.

This directive has significantly restricted the cryptocurrency market in Nigeria. However, the fact that the use of cryptocurrency is not prohibited has led to a gray area.

The CBN’s approach to crypto exchanges is also complex, especially in terms of its relationship with Binance. Last year, the Nigerian government accused Binance of causing the depreciation of the national currency “Naira”. The government invited Binance’s executives to the country and later arrested them. But one of these executives managed to escape arrest.

This incident caused tension in the Nigerian government’s relationship with Binance. The last directive can also be considered as a part of this tension.

The cryptocurrency market in Nigeria is full of uncertainties. It is not clear whether the last directive is fake or not. The CBN’s stance and future policies on cryptocurrencies also remain unclear.

Cryptocurrency market players and investors are waiting for the CBN to make a clear statement. The Nigerian government’s approach towards cryptocurrencies will determine the future of this sector in the country.

In light of these developments, it is important for investors in Nigeria and other countries to do the necessary research before investing in cryptocurrencies and to closely follow the course of this complex game.