CRYPTO NEWS: Nigerian Government Blocks Forex Exchanges Binance, OctaFX, Coinbase, others

Posted 2 months ago

by shakiez893

According to Financial Times, the Nigerian government has implemented substantial measures to stabilize its diminishing national currency, the naira. This endeavor involves restricting access to major cryptocurrency exchanges as part of the government's strategy to combat currency speculation during a period of historic lows for the naira.

On Wednesday, the Nigerian Communications Commission (NCC) directed telecoms companies to limit consumer access to the websites of prominent cryptocurrency platforms like Binance, Coinbase, and Kraken. Consequently, consumers encountered intermittent access to these sites on Thursday.

Bayo Onanuga, the Special Adviser of Information and Strategy to the President of Nigeria, affirmed reports regarding the government's decision to restrict access to cryptocurrency exchanges.

These platforms have significantly influenced unofficial market prices for the naira, with Binance often serving as a benchmark for local foreign currency exchange rates The government's action aims to regain authority over the valuation of the naira.

Onanuga stressed the importance of preventing platforms like Binance from influencing the value of the naira, particularly in light of their regulatory struggles in various countries and their disruptive impact on the currency market. He advocated for a potential ban on cryptocurrencies in Nigeria to halt the depreciation of the national currency.

Nigeria's adoption of stringent measures, including the closure of price-setting websites and the outlawing of certain cryptocurrency entities, highlights the challenges the country faces in maintaining its economic stability. Since the central bank lifted its dollar peg in June, Nigeria's national currency has experienced a significant decline, losing over 70% of its value.

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