Nigeria Imposes Ban on Crypto Exchanges, Blocks Access to Binance, Coinbase and Others
In Brief
Nigerian government blocked access to Binance, OctaFX and Coinbase in attempt to manage the country’s cryptocurrency sector.
Nigerian government instructed telecommunication companies to restrict access to cryptocurrency exchanges, including Binance, OctaFX and Coinbase. This action came several months after the Central Bank of Nigeria issued guidelines to regulate the activities of digital asset operators, reflecting an ongoing effort to manage and control the country’s cryptocurrency sector.
The new restriction is intended to mitigate currency speculation activities within the country and address concerns about potential foreign exchange market manipulation.
Before the restriction was enforced, the spot rate on Binance was approximately N1,850/$. The government has taken multiple measures to stabilise the situation, including instructing the Economic and Financial Crimes Commission to arrest Bureau de Change operators engaged in speculative activities.
Responding to subsequent user complaints regarding difficulties purchasing US dollars, Binance clarified that its platform is not intended for currency pricing.
Expressing a dedication to providing users with a market-driven, fraud-free, and manipulation-free platform, Binance stated, “As industry leaders, we are collaboratively engaging with local authorities, lawmakers, and regulators to address any instances of non-compliance.”
Binance temporarily halted transactions on its platform yesterday to safeguard users from potential price suppression. In response to allegations of currency speculation on its platform, Binance stated, “It is crucial to acknowledge that foreign exchange rates are influenced by various complex factors, over which Binance has no control.'”
Nevertheless, the exchange is currently involved in discussions with local regulators, policymakers, and other stakeholders to facilitate a transparent dialogue regarding the cryptocurrency and financial markets.
Changing Crypto Regulatory Landscape in Nigeria
The recent move comes months after the Central Bank of Nigeria lifted the ban on cryptocurrency trading at the end of last year, highlighting the current instability of the country’s regulatory framework for digital assets.
Recently, the Indian government also took action to delist major cryptocurrency exchanges, such as Binance, Kucoin, Kraken, and MEXC, from the local Apple App Store and Google Play while also blocking access to their websites, responding to the exchanges’ non-compliance with India’s new anti-money laundering rules.
The recent regulatory developments in Nigeria highlight the ongoing dynamic challenges and evolving nature of cryptocurrency regulation in the country.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
