According to The Financial Times, some cryptocurrency exchanges in Nigeria have recently faced accessibility issues for their users. This has sparked speculation of imposed restrictions on crypto sites in the country.
On Wednesday, local media reported that the Nigerian Communications Commission (NCC), the country’s telecom regulator, had received instructions from the apex bank to suspend access to popular crypto websites such as Binance, Coinbase, and Kraken. This development came just one day after Binance had implemented limits on peer-to-peer transactions trading the USDT/NGN pair. This coincided with the naira’s fall to record lows, as reported by another source.
These crypto sites, particularly Binance, have gained popularity for their peer-to-peer features that enable direct cryptocurrency trades. This became necessary after the central bank of Nigeria prohibited local financial institutions from facilitating such transactions years ago.
“Although the central bank recently lifted restrictions on banks and even considered granting licenses to crypto companies for legal crypto transactions, the recent steep decline of the naira to unprecedented lows means that Binance has had to impose trade restrictions.”
The naira’s worsening valuation (approximately $1 to ~N1,900) has been partly attributed by the government to crypto-trading platforms. In response, Binance and other exchanges have implemented restrictions on their platforms.
These platforms have served as a hedge against the frequent devaluation of the naira for many cryptocurrency users in the country. Therefore, the Nigerian government’s recent decision to restrict access to these platforms is seen as an attempt to regain control over the valuation of the naira. These exchanges have played a significant role in determining unofficial exchange rates for the naira, with Binance often being used as a benchmark. By limiting access to these platforms, the government aims to assert its authority over the naira’s valuation and stabilize its position in the financial market. However, the long-term effects of these actions are yet to unfold.
Bloomberg reports that a presidential spokesman has confirmed Nigeria’s directive to instruct telecoms and internet service providers to block access to cryptocurrency trading platforms. Binance has not explicitly acknowledged this directive, but it has assured its users of their account’s accessibility and the security of their funds. In a statement, Binance said, “We are aware that some users are experiencing issues accessing binance.com, along with other platforms in the industry. Only users attempting to access the website are impacted, although the app is currently available.”
While some users reported difficulties accessing Binance in the early hours of Thursday, it appears that the directive to restrict access has been temporarily halted. As of now, platforms like Kraken and Coinbase are also accessible in Nigeria.
