Nigerian authorities ban access to Crypto exchanges Binance and the like amid Naira’s free fall

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In a compelling move to stabilize Nigeria’s currency, Naira authorities have imposed a ban on accessing cryptocurrency exchanges. The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) jointly directed telecommunication companies to block access to crypto companies, their websites and applications. This move is aiming to curb perceived manipulation of the foreign exchange (FX) market.

Crypto platforms inaccessible through local telecom networks

According to the news provided by local authorities, this directive by the government has left Nigerian users unable to access major crypto platforms like Binance, Kraken and Coinbase through local networks. Though initial access was granted through some selective applications, later even that was revoked.

The government’s decision to clamp down crypto exchanges follows concerns over continuous FX market manipulation which the government believes is  contributing to the rapid depreciation of the naira. 

Government officials like Bayo Onanuga, the Special Adviser to the President on Information and Strategy have called for regulatory action against market manipulation by crypto platforms particularly singling out Binance. Binance is called out for setting exchange rates and operating beyond regulatory oversight.

Access denied after a year of lift of crypto ban

This latest development contrasts when just over a year ago, the CBN imposed a ban on crypto transactions between banks, exchanges, and individuals. But in December 2023, the CBN lifted its restrictions on banks facilitating cryptocurrency transactions.

Conclusion:

The future of digital asset adoption in Nigeria remains very uncertain. It’s the investors and the crypto enthusiasts from Nigeria that are at the other end who suffer. As stakeholders grapple with the implications of the ban,. 

The aim of this regulation was to address concerns surrounding market manipulation and currency stability. But this move might prove to be a hurdle for the country’s development of the crypto industry.

The government is making huge efforts to stabilize the naira. Ban on accessing crypto exchanges might help the ongoing economic crisis in the country. Though the path forward for Nigeria’s crypto industry remains uncertain, crypto users stay optimistic and hope to regain access  on crypto exchanges.