Nigeria Allegedly Considering Prohibition of Binance and Other Crypto Companies Due to Forex Connections
The Nigerian government is reportedly contemplating the possibility of blocking crypto exchange Binance and other similar companies in order to prevent manipulation of the forex market and illicit movement of funds. According to Nigerian officials cited by Premium Times Nigeria, local authorities are considering this action due to concerns about criminals using crypto trading platforms to destabilize the country’s fiat currency, the naira. Aside from economic implications, authorities are also worried about national security, as there have been reports of criminal organizations using crypto platforms for ransom payments.
This decision comes in the wake of recent measures taken by Binance, including the imposition of a limit on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria. In a blog announcement addressed to Nigerian users on February 20th, Binance reaffirmed its commitment to collaborating with local authorities, stating that it is actively working with them to address any non-compliance issues.
Binance’s actions coincide with a joint effort by the Office of the National Security Adviser and the Central Bank of Nigeria (CBN) to tackle challenges affecting economic stability. The goal of this joint initiative is to enhance oversight of local trading platforms in response to increased volatility in the domestic markets.
