Nigeria restricts access to crypto exchanges Binance and Coinbase

What’s new? Nigerian authorities have asked local telecommunications companies to restrict access to the websites of cryptocurrency platforms such as Binance, OctaFX, Coinbase, and others. According to local media, the ban is aimed at slowing down speculative activity with digital assets in the country. The decision comes a few months after the Central Bank of Nigeria (CBN) lifted a ban on crypto transactions imposed in 2021.

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What else is known? Following the government’s restrictions on crypto exchange websites, one user wrote in X that Nigerians will be looking for alternatives.

Source: Twitter.com

Binance had earlier responded to the government’s request to help protect the foreign exchange market and the nation’s currency by momentarily restricting local users’ access to the P2P platform. The exchange later said it was implementing additional restrictions to curb manipulation.

Following complaints from Nigerian users, the Binance team noted that it has initiated compliance efforts. The exchange released a statement emphasizing its commitment to protecting users.

“We have stringent measures in place to protect users in the market, including real-time monitoring, immediate removal of non-compliant advertisements, and permanent removal of bad actors from using our P2P product,” company representatives stressed.

Special Adviser Information and Strategy to Nigeria’s President Bola Tinubu, Bayo Onanuga, has accused crypto exchanges of manipulating the naira, leading to the continued fall in the forex market. He called on the Economic and Financial Crimes Commission (EFCC) and the CBN to take swift action against the crypto platforms.

In his post on X, Onanuga noted that Binance, which is facing regulatory squabbles in many countries, should not be allowed to dictate the value of the naira. He also stated that other crypto platforms such as Kucoin and Bybit should be banned from operating in Nigeria’s cyberspace.

Source: Twitter.com

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

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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.