The Nigerian government has taken action against several online cryptocurrency platforms, including Binance, preventing Nigerians from buying and selling dollars on these platforms. This decision comes amid concerns over the continuous depreciation of the naira in unofficial markets, with the government attributing part of the problem to cryptocurrency firms allegedly manipulating the forex market.
The banned platforms, which offer peer-to-peer (P2P) services for currency exchange, can no longer facilitate transactions for Nigerians to buy or sell dollars or other crypto assets. The government’s move is aimed at curbing currency speculation activities and preventing illicit financial transfers.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, has been a vocal supporter of the ban on platforms like Binance, citing concerns about their impact on the forex market.
In response, Binance clarified that it does not operate as a price discovery platform and that FX rates are influenced by complex factors unrelated to the company. Binance emphasized that its peer-to-peer platform is market-driven and not intended to serve as a proxy for currency pricing in Nigeria.
The banned platforms include Binance, Forextime, OctaFX, Crypto FXTM, Coinbase, Kraken, Kucoin, and Bybit.
Additionally, the Central Bank of Nigeria (CBN) has issued guidelines instructing banks to halt cash withdrawals from virtual and digital asset transactions. These guidelines aim to ensure that accounts opened for virtual assets are solely used for transactions involving digital assets and not for other purposes.
The government’s actions reflect its efforts to address concerns about currency manipulation and illicit financial activities while stabilizing the naira and maintaining the integrity of the forex market.
