Crypto exchange giants like Binance and Coinbase are facing significant challenges in Nigeria as the country intensifies its efforts to regulate cryptocurrency transactions. Despite Nigeria being recognized as one of the most crypto-savvy nations, recent measures aim to curb financial crimes associated with digital currencies.
Telecom Firms Directed to Restrict Access
Nigeria has instructed telecommunications companies to block access to popular crypto websites, including Binance, Coinbase, and OctaFX. This directive, first reported by local media, is intended to slow down crypto speculation activities within the country. The move comes just a few months after the Central Bank of Nigeria (CBN) lifted its previous ban on crypto transactions, allowing lenders to open accounts for crypto firms.
Background on Nigeria’s Crypto Regulations
- 2021: The Central Bank of Nigeria imposed a ban on crypto transactions.
- 2021: CBN became one of the first central banks to issue a central bank digital asset (CBDC).
- Recent: CBN lifted the ban, allowing banks to open accounts for crypto firms.
User Reactions and Binance’s Response
Following the restrictions, Nigerian users have expressed their frustrations on social media platforms like X (formerly Twitter). One user noted, "Binance doesn’t work in Nigeria anymore; you just can’t open the app. I believe we know our alternative."
In response to the complaints, Binance has stated that it is taking steps to ensure regulatory compliance. The company emphasized its commitment to user protection through measures such as real-time monitoring, immediate removal of non-compliant advertisements, and permanent bans for bad actors.
Presidential Adviser Calls for Action
Bayo Onanuga, the Special Adviser to Nigerian President Bola Tinubu on Information and Strategy, has accused crypto exchanges of manipulating the naira, contributing to its depreciation in the forex market. He urged the Economic and Financial Crimes Commission (EFCC) and the CBN to take swift action against these platforms. In a detailed post on X, he argued that Binance, which is already facing regulatory challenges in multiple countries, should not be allowed to influence the value of the naira.
Conclusion
As Nigeria continues to tighten its grip on cryptocurrency activities, the future of crypto exchanges in the country remains uncertain. The recent directives and public statements indicate a strong governmental stance against the perceived risks associated with digital currencies.
