In a bid to curb what it perceives as the continuous manipulation of the forex market and illicit movement of funds, the Nigerian government has taken decisive action by blocking the online platforms of prominent crypto firms, including Binance.
The Nigerian Communications Commission (NCC) had directed telecommunication companies in the country to block access to these platforms. Alongside Binance, other affected platforms include Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken.
This move follows earlier considerations by the government to stem the free fall of the local currency, the naira. Sources from the presidency and regulatory bodies revealed that the decision to target Binance and other crypto firms was prompted by concerns over currency speculation and money laundering activities facilitated by these platforms, which are believed to be contributing to the weakening of the naira.
A check carried by our correspondent as at the time of filing this report, using a device connected to MTN LTE network, shows that Binance(binance.com) and OctaFX are currently unaccessible.
Binance, a leading digital assets platform, has been under scrutiny by Nigerian authorities since September 2023 when the country’s Securities and Exchange Commission (SEC) disclaimed its operations, labeling them as ‘illegal’.
Despite the warning, Binance continued its activities, garnering significant patronage, particularly among urban youths and suspected speculators and money launderers.
Aside from economic concerns, officials have also raised alarms about national security, citing the platforms’ use by criminal groups for activities such as ransom payments.
In response to these developments, Binance has stated its commitment to working with local authorities and regulators to address compliance issues, including taking action against manipulative behavior on its platform.
The Nigerian government’s decision to block access to these crypto platforms underscores its determination to maintain stability in the forex market and combat financial crimes.
However, this move has sparked debates about the implications for digital asset trading and the broader financial landscape in Nigeria.
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