Nigeria, often regarded as one of the most crypto-savvy nations, is now intensifying its scrutiny of crypto transactions in an effort to combat financial crimes. Despite being recognized for its crypto adoption, the country has recently implemented stricter regulations on crypto activities.
In a recent development, Nigeria has instructed telecommunication companies to restrict access to popular crypto websites such as Binance, Coinbase, and OctaFX. This directive, aimed at curbing crypto speculation activities, was first reported by local media outlets on Wednesday.
The move comes shortly after the Central Bank of Nigeria (CBN) lifted its ban on crypto transactions, instructing lenders to open accounts for crypto firms. This reversal of the 2021 ban marks a significant shift in policy by the CBN, which had previously been wary of crypto activities.
In response to the restrictions on crypto exchange websites, users in Nigeria have begun exploring alternative platforms. Following complaints about access issues, Binance exchange has stated its commitment to regulatory compliance and user protection, implementing measures such as real-time monitoring and removal of non-compliant advertisements.
However, not everyone in Nigeria is supportive of crypto exchanges. Mr. Bayo Onanuga, Special Adviser to Nigerian President Bola Tinubu on Information and Strategy, has accused crypto exchanges of manipulating the Naira and contributing to the depreciation of the currency in the forex market. Onanuga urged regulatory authorities, including the Economic and Financial Crimes Commission (EFCC) and the CBN, to take swift action against crypto platforms.
In a detailed statement, Onanuga singled out Binance and called for the banning of other crypto platforms operating in Nigeria’s cyberspace. He also advocated for the re-banning of FX platform Aboki.
Overall, Nigeria’s recent actions reflect a growing concern over the potential risks associated with crypto transactions, prompting regulatory authorities to take steps to mitigate these risks and safeguard the country’s financial stability.
