Nigerian authorities are preparing for their next phase of action against crypto trading, focusing on peer-to-peer (P2P) platforms like OKX, Binance, KuCoin, and Bybit, as indicated by a circulating message on social media platform X.

However, the Central Bank of Nigeria (CBN) has dismissed the content of the message as "fake content," denying its origin from the bank. This reversal of policy decisions is not uncommon in the region, according to sources familiar with the situation.

As per the circulating message, the CBN directed financial institutions in Nigeria to identify individuals or entities involved in transactions with these exchanges and enforce a six-month Post No Debit (PND) instruction on their accounts. The CBN stated that these platforms are unauthorized to operate in Nigeria and are currently under investigation, warning of severe regulatory consequences for non-compliance.

Additionally, the bank cautioned against any illegal trading of USDT, threatening arrests for offenders. It reiterated the prohibition for regulated financial entities in the country from engaging in cryptocurrency dealings or facilitating payments for crypto exchanges.

Olumide Adesina, a business journalist, clarified that the CBN's official stance is that only entities regulated by the Nigerian Securities and Exchange Commission (SEC) in the crypto market are allowed to transact with banks.

In a recent press briefing, Ola Olukayode, chairman of the Economic and Financial Crimes Commission (EFFC), highlighted the exacerbating effect of transactions on P2P platforms like KuCoin on the country's foreign exchange challenges. The EFFC reportedly froze about 300 suspected illegal forex accounts associated with P2P platforms, where over $15 billion flowed through one platform in the past year.

This crackdown comes amid the Nigerian government's efforts to stabilize the foreign exchange market by adopting a strict stance on crypto. Initially, authorities blamed speculative activities on the Binance crypto exchange for weakening the Nigerian Naira against the US Dollar. Binance, however, has refuted these allegations but is currently undergoing trial, along with two executives, for alleged tax evasion and money laundering. Binance has stated its cooperation with authorities and called for the release of its detained employees.