In a move aimed at addressing concerns over currency speculation and money laundering, the Nigerian government has directed telecommunication companies to block access to several prominent crypto platforms, including Binance, Forextime, OctaFX, and others.
Alongside Binance, other affected platforms include Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken.
Our correspondent, using a device connected to the MTN LTE network at the time of this report, found that Binance (binance.com) and OctaFX are currently inaccessible.
The decision comes amidst efforts to stabilize the local currency, the naira, which has been experiencing a free fall in recent times.
Authorities cited worries about illicit financial activities facilitated by these platforms, contributing to the currency’s weakening.
Binance, a leading digital assets platform, has been under scrutiny since September 2023 when the Nigerian Securities and Exchange Commission labeled its operations as ‘illegal’.
Despite warnings, Binance continued its activities, drawing significant patronage, particularly among urban youths and suspected speculators and money launderers.
Concerns extend beyond economic implications, with officials raising alarms about national security, pointing to the platforms’ use by criminal groups for activities such as ransom payments.
In response, Binance has expressed commitment to collaborating with local authorities and regulators to address compliance issues, including tackling manipulative behavior on its platform.
The government’s decision to block access underscored its determination to maintain stability in the forex market and combat financial crimes.
However, it has ignited debates about the implications for digital asset trading and the broader financial landscape in Nigeria.
Meanwhile, the value of the Nigerian naira has seen a surprising increase compared to the Tether (USDT) cryptocurrency, rising from 1800 to 1370.
This coincides with rumours of discussions between cryptocurrency companies and government officials regarding new rules to limit certain types of trading that affect the naira.
The proposed regulations may include limits on trading volumes, enhanced transaction monitoring, and stricter guidelines for cryptocurrency exchanges, aimed at reducing volatility in the naira’s value.
