Currently, Commercial banks in Nigeria have begun the monitoring of accounts linked to cryptocurrency trading.
This measure implemented by Commercial banks developed after The Central Bank of Nigeria(CBN) ordered the freezing of accounts belonging to at least two individuals engaged in cryptocurrency trading.
Report suggests that an internal memo was delivered, instructing employees of commercial banks to commence the tracking of conspicuous transaction volumes or those that are believed to be used for cryptocurrency trading.
The memo revealed penalties would be given to employees who fail to adequately monitor crypto active accounts. Thus, all workers are now required to participate in monitoring accounts, transactions and customers to guarantee that the bank is fully compliant with CBN requirements, as per the internal communication.
Accounts of fintech firms could be flagged for potential illegal activities. These companies generate voluminous daily transactions short of payment licenses or any that contain cryptocurrencies in their memorandum or expression of business.
Other potential indicators consist of small companies whose daily sales are more than what they should be, Personal accounts with large multi-day inflow and outflow and accounts that receives huge amounts and disburse payments to multiple beneficiaries will all be under surveillance.
The Central Bank of Nigeria explicitly stated in the memo that accounts being utilized for cryptocurrency trading violates the Central Bank’s policy. However, Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), has criticized the CBN for the erratic decision, labelling the policy as illegal and unjust.