The Central Bank of Nigeria (CBN) has announced its intention to intensify its crackdown on crypto trading platforms acting as conduits for illicit financial flows. This move comes after it revealed that Binance, a major crypto exchange, received $26 billion from unidentified sources. The announcement was made today following the bank's Monetary Policy Committee (MPC) meeting that commenced on Monday.

Last week, Nigeria issued an order for telecommunication companies and other internet service providers in the West African nation to block access to cryptocurrency trading platforms such as Binance, Coinbase, and OctaFX. This decision is part of the government's initiative to combat the rapid devaluation of the Naira. The trading platforms being blocked in Africa's largest cryptocurrency economy are commonly used by Nigerians as a hedge against the frequent devaluations of the Naira.

"We are concerned that certain practices indicate illicit flow through a number of entities and suspicious flows at best. In the case of Binance, 26 billion US Dollars has passed through Binance Nigeria from unidentified sources and users. Current collaborations between agencies like EFCC, police, and the Office of the NSA are addressing the situation,” Olayemi Cardoso, the CBN governor said during the meeting.

The Nigerian government has taken a firm stance against cryptocurrencies, especially stablecoins pegged to the dollar, advocating for a ban to counter the depreciation of the local currency. The naira has witnessed a substantial 70% decrease in value following the central bank's decision to abandon its dollar peg in June, a move aimed at attracting foreign-currency investments.

"In due course, as we progress and have information to share, we will certainly share. Suffice it to say that we are determined to do everything it takes to ensure that we take charge of our market or to put it differently, do not allow others to manipulate our markets in a way that ends distortionary and sub-optimizes for all Nigerians. We will do everything possible to prevent any of these kinds of infractions from taking place,” the central bank governor warned.

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