Nigeria has instructed its telecommunications companies to limit access to the websites of cryptocurrency firms like Binance, OctaFX, and Coinbase. This decision comes several months after the Central Bank of Nigeria (CBN) issued guidelines to regulate the activities of digital asset operators.
In December 2023, the CBN reversed its position on crypto assets, instructing banks to disregard the ban on crypto transactions imposed in February 2021.
The new directive to restrict access to crypto websites aims to curb currency speculation activities within the country. Binance clarified that its platform does not facilitate currency pricing, responding to user complaints about the inability to purchase dollars.
One user, @MikaelCBernard, tweeted about the absence of dollars on Binance, suggesting a strike among traders. Binance emphasized its dedication to providing a market-driven, fraud-free platform, expressing willingness to collaborate with local authorities and regulators to ensure compliance.
Later, Binance temporarily paused transactions to safeguard users from price manipulation. Addressing rumors of currency speculation, Binance highlighted the complex factors influencing foreign exchange rates beyond its control.
Meanwhile, reports emerged that the Nigerian Communications Commission (NCC) instructed telecom companies to block access to crypto websites, including Binance, to prevent further manipulation of the foreign exchange market.
Despite these measures, Reuben Mouka, Director of Public Affairs at the NCC, claimed unawareness of such directives, stating that website regulation falls outside the NCC's jurisdiction.
Nigerians expressed dissatisfaction with the government's move on social media platforms like X (formerly Twitter), lamenting difficulties accessing the Binance website. Some suggested the use of Virtual Private Network (VPN) apps to bypass restrictions, reminiscent of responses to the 2021 Twitter ban.
Critics argued that targeting Binance won't address underlying economic issues, emphasizing the country's deep systemic problems. They also highlighted the resilience of Nigeria's crypto community, citing significant transaction volumes despite regulatory challenges.
Chimezie Chuta, founder of Blockchain Nigeria User Group, criticized the government's focus, warning that restricting crypto platforms could exacerbate economic challenges and promote peer-to-peer exchanges via social media channels.
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