The Nigerian government has blocked online platforms like Binance, OctaFX, Coinbase, and others due to concerns about continuous forex market manipulation and illicit fund movements.
Sources from major telecommunication companies revealed that the Nigerian Communications Commission (NCC) conveyed the directive to telcos, who have started implementing the block on these platforms.
Binance banned in Nigeria
Apart from Binance, other platforms affected include Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken, among others.
The decision to block these platforms stems from the government’s effort to prevent the further decline of the local currency and reports of their use by currency speculators and money launderers for criminal activities.
The government, including the Federal Inland Revenue Service (FIRS) and regulatory sources, asserts that these platforms contribute significantly to the weakening of the naira.
Despite warnings from regulatory bodies, Binance continued operations, attracting a substantial user base, especially among urban youths and suspected speculators.
Binance responded on Wednesday, stating that users behaving manipulatively would be removed from the platform. The company emphasized collaboration with local authorities, lawmakers, and regulators to ensure compliance.
It mentioned specific measures, such as setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads, and processes for actioning against any market manipulators.
President Bola Tinubu, represented by Vice President Kashim Shettima, announced plans on Tuesday to raise $10 billion to enhance liquidity in the foreign exchange market. The naira hit an all-time low of N1,900 per dollar in the parallel market, while at the Nigerian Autonomous Foreign Exchange Market (NAFEM), it appreciated slightly to N1,551.24.
Amidst speculations and uncertainties about supply constraints, the National Security Adviser’s office directed law enforcement agencies to take firm measures against those engaged in forex market speculation.
The statement highlighted the collaboration between the Office of the National Security Adviser and the Central Bank of Nigeria to address challenges impacting the nation’s economic stability, acknowledging commendable proactive measures by the CBN but expressing concerns about speculative activities undermining these efforts.
