Nigeria is preparing to ban crypto exchanges in order to stabilize the national currency

This is because the country is facing one of the worst cost of living crises in recent years

22.02.2024 - 10:05

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2 min

What’s new? The Nigerian government is considering banning crypto exchanges to stabilize its own currency, the naira. This is because the country is facing one of the worst cost of living crises in recent years. The Guardian, citing a report by Premium Times, writes that crypto platforms could suffer due to manipulation and unethical behavior responsible for the appreciation of foreign currencies against the naira.

Material by The Guardian

What else is known? The Premium Times report, citing presidential and regulatory sources, says the government decided to take action against the Binance exchange and other crypto firms following reports that speculators and money launderers were using them to carry out criminal activities.

Despite several measures introduced by the Central Bank of Nigeria (CBN) in recent weeks, the Nigerian naira continues to depreciate against the dollar.

A check by The Guardian revealed that the dollar was trading for the naira at N1850 as of February 20 on crypto platforms.

The Presidency and regulatory sources said “criminal activities” on the platforms contributed significantly to the weakening of the naira, which has now fallen to an all-time low of N1800 per dollar.

A&D Forensics: Nigeria needs cryptocurrency regulation measures to ensure financial security

The expert noted that banks should use the services of compliance specialists in the field of digital assets

In September 2023, analytics firm Chainalysis ranked Nigeria second in its ranking for cryptocurrency adoption. In December, a consortium of local banks, fintech, and blockchain companies began developing the cNGN stablecoin, which is expected to launch this year. The asset, which is pegged to the Nigerian naira (NGN) at a 1:1 ratio, will be recognized as legal tender.

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