Nigeria moves to block use of cryptocurrency trading platforms
Nigeria ordered telecommunications companies and other internet service providers in the West African nation to block access to cryptocurrency trading platforms, a presidential spokesman confirmed.
The directive affects websites including those operated by Binance, Coinbase and Kraken, which are popular in Africa’s most populous nation where Nigerians use crypto as a hedge against frequent devaluation of the naira.
Local online newspaper Premium Times reported earlier on Thursday that telecommunications providers were already implementing the order.
“Premium Times is correct,” presidential spokesman Bayo Onanuga said in a post on X, responding to the report.
In a statement to Bloomberg News, Binance confirmed that some users in Nigeria were experiencing issues accessing its website. “Please be assured that Binance users’ funds are secure,” a spokesperson for the crypto exchange said.
Onanuga has said previously that cryptocurrencies should be banned to stop the weakening of the local currency. The naira has lost 70% of its value since the central bank lifted its dollar peg in June in a bid to attract foreign-currency inflows. Those inflows haven’t materialized.
“Binance, facing regulatory showdown in many countries, and causing disruptions in the currency market, should not be allowed to dictate the value of the naira, not on its crypto exchange platform,” Onanuga said. “Crypto should be banned in our country or else this bleeding of our currency will continue unabated.”
Binance said the exchange remained “committed to adhering to applicable local regulations and laws, with a dedicated focus on maintaining active engagement with all relevant stakeholders, regulators and policymakers.”
In June, Nigeria’s Securities and Exchange Commission said Binance was operating in the country illegally. It was a significant change in tone from the announcement in late 2022 that Nigerian authorities were discussing how to partner with the crypto exchange to establish a “digital economic zone” that would focus on blockchain technology.
The developments in Nigeria come as regulators across the globe continue to rein in the exuberance of the crypto sector, following a 2022 crash in prices which led to a slew of bankruptcies, scandals and billions in investor losses.
Some jurisdictions, including the European Union, have passed or are seeking to push through new legislation to govern the asset class.
In Asia, Singapore and Hong Kong have looked to provide more investor safeguards and clarity on rules around digital assets through new dedicated frameworks. An Indian government crackdown on offshore platforms has seen global crypto exchanges like Binance lose market share to local competitors.
