In a move aimed at protecting the national currency, Nigeria has implemented measures to block user access to several major cryptocurrency exchanges, including Binance, OctaFX, and Coinbase, according to a report by local online newspaper Premium Times. The directive, reportedly issued by the Nigerian Communications Commission, comes amidst concerns that these platforms have engaged in currency speculation, contributing to the devaluation of the country’s currency, the naira.
Presidential spokesman Bayo Onanuga confirmed the report’s accuracy, stating on X (formerly Twitter), “Premium Times is correct,” and highlighting that the directive affects significant platforms within the crypto space.
Binance, the world’s largest cryptocurrency exchange, stated to Bloomberg that some Nigerian clients faced difficulties accessing its platform due to the imposed restrictions. According to a statement the company made to Coindesk on Thursday, however, Coinbase was still reportedly accessible from Nigeria. Towards the end of the week, reports indicated that Nigerian users experienced intermittent access to some crypto platforms.
Nigeria has witnessed a trend where citizens often turn to cryptocurrencies to preserve their wealth against the backdrop of frequent devaluations of the naira. Despite this, local authorities have accused crypto exchanges of undermining the national currency through currency speculation.
Recent data from LSEG indicated that the naira hit a record low of 1,600 against the US dollar on Wednesday, following Binance’s imposition of limits on peer-to-peer transactions involving the pair. At the beginning of January, the naira traded at less than 900 to the dollar.
Onanuga, the presidential spokesman, criticised Binance for “blatantly setting exchange rates for Nigeria” and taking on a responsibility that belonged to the Central Bank of Nigeria (CBN). Onanuga suggested that action be taken against platforms manipulating the national currency or called for an outright ban on cryptocurrencies in the country.
Binance, already facing heightened scrutiny globally, including a criminal investigation in the US resulting in a substantial fine for violating anti-money laundering regulations, continues to be embroiled in regulatory challenges. In the wake of the 2022 FTX crypto exchange collapse, many countries have intensified efforts to legislate and regulate cryptocurrencies and trading platforms.
