Breaking : Binance and other cryptocurrency firms, banned from operating in Nigeria over alleged manipulation of the forex market, Says FG

The Federal Government has moved against online platforms of Binance and other cryptocurrency firms over alleged manipulation of the forex market.

Binance is a digital assets platform which serves as a window for peer to peer transaction allowing users to advertise interest to sell or buy currencies of their choice.

On February 5, 2021, the Central Bank of Nigeria (CBN) directed banks, non-bank financial institutions (NBFIs), and other financial institutions (OFIs) to close accounts of persons or entities involved in cryptocurrency transactions.

The regulator also warned local financial institutions against dealing in crypto assets or facilitating payments for crypto exchanges.

CBN cited concerns over money laundering, terrorism financing, cybercrime, and the volatility of cryptocurrencies as reasons for the ban.

In December 2023, the Central Bank of Nigeria changed its stance on crypto assets and asked banks to disregard its February 2021 ban on crypto transactions.

This latest restriction on crypto websites is aimed at slowing currency speculation activities in the country, with Binance stating that its platform is not for currency pricing.

Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, argued that Binance and other crypto platforms should be banned from operating in Nigeria.

He said the cryptocurrency trading platform is facing restrictions in multiple jurisdictions such as the United States, Singapore, Canada and the United Kingdom.

Reacting, Binance said its firm does not operate as a price discovery platform and FX rates are determined by complex forces that have nothing to do with the company.

The trading company said it provides a market-driven peer-to-peer (P2P) platform that is not meant to be a proxy for currency pricing in Nigeria.

The platform users have complained about their inability to buy dollars.

The platforms blocked include:

– Binance

– Forextime

– OctaFX

– Crypto

– FXTM

– Coinbase

– Kraken

– Kucoin

– Bybit

There are also many other platforms used in the cryptocurrency transaction in Nigeria.