In Nigeria, the use of cryptocurrency has faced some challenges, leading to speculation about imposed restrictions. According to the Financial Times, the crypto site has experienced accessibility issues for users. Local media reports that the Nigerian Communications Commission (NCC), a telecom regulator, received instructions from the country’s apex banking institution to suspend access to crypto websites such as Binance, Coinbase, and Kraken. This development occurred just one day after Binance, a popular platform in Nigeria, announced restrictions on transactions involving the USDT/NGN currency pair. This coincided with the naira, the country’s currency, falling to record lows.
Binance and other crypto sites have become popular in Nigeria, especially after the central bank banned local financial institutions from facilitating direct cryptocurrency transactions. Although the central bank recently lifted these restrictions and considered granting licenses to crypto companies for legal transactions, the recent sharp decline of the naira to unprecedented lows (~N1,900 to $1) has prompted Binance to impose trade restrictions on Tuesday. The government attributes this decline to the activities of crypto-trading platforms.
These platforms have played a significant role in determining the unofficial exchange rates for the naira, serving as a benchmark for the local exchange rate. However, the government’s recent decision to restrict access to these platforms is seen as an attempt to regain control over the value of the naira. The government wants to establish its authority on the naira valuation and stabilize the country’s position in the financial markets. The long-term consequences of these actions are yet to be revealed.
The president’s spokesperson confirmed that a directive was issued to restrict access to cryptocurrency trading platforms, including Binance, through internet and telecom service providers. While Binance did not acknowledge the directive, they assured users that their funds and accounts would still be accessible. Some users reported difficulties accessing the Binance website on Thursday morning, but the app remained available.
In conclusion, the recent restrictions on cryptocurrency exchanges in Nigeria have caused concern and speculation. The government’s actions are seen as a way to control the value of the naira, but the long-term effects are still unknown. Users can still access the Binance app, but the website may experience some issues. To stay updated on the situation, users can follow sources like Bloomberg and check the Binance website for any updates.
