Nigerian Government Blocks Binance and Other Crypto Platforms Amid Forex Market Manipulation Concerns

The Nigerian government has taken decisive action by blocking access to online platforms of several cryptocurrency firms, including Binance, as part of efforts to curb what it perceives as ongoing manipulation of the foreign exchange market and illicit financial activities.

Sources within major telecommunication companies in Nigeria revealed that the Nigerian Communications Commission (NCC) issued directives to telcos to block access to these platforms, and they have commenced compliance with the directive.

Among the affected platforms besides Binance are Bitget, OctaFX, MEXC, FXTM, Coinbase, Kraken, and others.

This move by the government comes amid concerns over the weakening of the local currency, the naira, and reports of currency speculators and money launderers exploiting these platforms for illicit activities.

NEW: 🇳🇬Nigerian government restricts access to #Binance, OctaFX, Bitget, and other platforms. pic.twitter.com/7Q5LOV4Z3f

— Coinwaft (@coinwaft) February 22, 2024

According to sources from the presidency and regulatory bodies, the decision to crack down on Binance and other crypto firms was prompted by intelligence suggesting that these platforms were being used for criminal purposes, thereby undermining the stability of the naira.

Binance, a prominent digital assets platform, facilitates peer-to-peer transactions, allowing users to buy or sell currencies of their choice.

Despite warnings from Nigeria’s Securities and Exchange Commission (SEC) in September 2023 regarding the unregistered and illegal status of Binance Nigeria Limited, the platform continued its operations, attracting significant usage, particularly among urban youths and suspected speculators and money launderers.

In response to the restrictions imposed by the Nigerian government on accessing online platforms of various crypto firms, Binance issued a statement acknowledging the challenges faced by some users. The company stated

“We are aware that some users are experiencing issues accessing binance.com, along with other platforms in the industry. Only users attempting to access the website are impacted, although the App is currently available.”

Binance

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Nigerian Government’s Economic Plans and Naira Performance:

In response to the government’s actions, Binance stated that it is committed to collaborating with local authorities and regulators to address non-compliance issues. The platform emphasized its efforts to remove users engaging in manipulative behavior and implement measures to combat market manipulation.

Meanwhile, President Bola Tinubu announced plans to raise $10 billion to enhance liquidity in the foreign exchange market during the inaugural Public Wealth Management Conference in Abuja. The government aims to optimize the management of its assets and investments to stimulate economic growth and bolster the country’s GDP.

Despite efforts to stabilize the foreign exchange market, the naira experienced a significant decline, reaching an all-time low of N1,900 per dollar in the parallel market. Speculation and uncertainties surrounding supply constraints contributed to the currency’s depreciation.

However, the naira appreciated slightly to N1,551.24 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Currently, Tether (USDT) is trading at 1681.1/$ on Binance P2P, marking a notable decrease from yesterday’s high of 1870/$.

In response to these developments, the Office of the National Security Adviser instructed law enforcement agencies to take stringent measures against individuals involved in foreign exchange market speculation like the Bureau De Change(BDEC), acknowledging the need to combat activities that exacerbate the depreciation of the naira.

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