Updated on Feb. 22 at 9:30 am UTC: A response from Binance to its customers has been added in the form of a screenshot.
An adviser to President Bola Tinubu of Nigeria has called for a ban on Binance, KuCoin, and other trading platforms in the country. Bayo Onanuga, the president’s adviser on information and strategy, made these allegations on the X social media platform, claiming that these platforms manipulated Nigeria’s fiat currency, the Nigerian naira, which has contributed to the currency’s decline in the forex market. There are speculations that the government is already considering a ban.
In a post titled “The Naira-Dollar Manipulators,” Onanuga criticized Nigerians for trading on the Binance platform, accusing them of being unpatriotic. He urged the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to quickly shut down cryptocurrency exchanges in the country. Onanuga argued that Binance, which is currently under regulatory scrutiny in multiple countries, should not have the authority to determine the value of the naira on its crypto exchange platform. However, on Feb. 22, Binance distanced itself from the forex crisis in Nigeria, stating that its platform is “market-driven and not meant to determine the pricing of the naira in Nigeria.”
Users of cryptocurrencies in Nigeria have reported difficulties accessing various crypto exchange websites, including Binance and OctaFX. This issue arose on the evening of Feb. 21, leading to speculations of a potential government ban on crypto platforms.
Binance responded to this development by sending an email to its users, acknowledging the situation and clarifying that it only affected the online platform, while the Binance app remained functional. The exchange assured users that it is actively engaging with regulators to promote an open and transparent dialogue on managing the evolving landscape of cryptocurrency in the country.
In another development, Binance set a limit on the selling price of Tether (USDT) tokens on its peer-to-peer (P2P) platform, preventing traders from selling USDT above 1,802 naira per USDT. Despite speculation within the local crypto community, the exchange explained that the price restriction was due to an automatic system pause.
Nigeria currently holds the title of being the largest P2P market globally, which came about after the CBN banned institutions from buying and selling crypto in 2021. However, a circular sent to banks in December 2023 lifted the crypto ban on Nigerian banks, allowing them to facilitate cryptocurrency transactions.
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