Nigeria Tightens Crypto Regulations: Telcoms Directed to Block Access to Binance, Coinbase, and OctaFX
The Nigerian government is intensifying its scrutiny of crypto transactions in an effort to combat financial crimes. Despite being considered one of the most crypto-savvy nations, Nigeria has recently implemented stricter regulations. As part of these measures, the country has directed telecommunication companies to block access to popular crypto websites such as Binance, Coinbase, and OctaFX. This move aims to slow down crypto speculation activities within the country.
Interestingly, this action comes shortly after the Central Bank of Nigeria lifted its ban on crypto transactions and instructed lenders to open accounts for crypto firms. In 2021, the CBN became one of the first central banks to issue a central bank digital asset (CBDC).
As a result of these restrictions, Nigerian users are now seeking alternative platforms for their crypto transactions.
Binance Responds with Regulatory Compliance Efforts
Binance exchange has responded to user complaints from Nigeria by stating that it is taking steps to ensure regulatory compliance. The exchange has emphasized its commitment to protecting users and complying with regulations. Binance has implemented measures such as real-time monitoring, removal of non-compliant advertisements, and banning bad actors from using its peer-to-peer product.
President’s Adviser Calls for End to Exchange Operations
Bayo Onanuga, the 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 forex market. He called on the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to take swift action against these exchanges.
In a social media post, Onanuga specifically mentioned Binance and other crypto platforms, urging for their banning from operating in Nigeria’s cyberspace. He also called for the re-banning of the FX platform Aboki.
Hot Take: Nigeria’s Crypto Crackdown Aims to Curb Financial Crimes
Nigeria’s recent restrictions on crypto exchange websites, including blocking access to popular platforms, demonstrate the government’s commitment to combating financial crimes. While these measures may inconvenience Nigerian crypto users, they are intended to protect the integrity of the country’s financial system. As a result, alternative platforms are being sought after for crypto transactions. Binance, in response to user concerns, has taken steps to ensure regulatory compliance and enhance user protection. However, criticism from President’s Adviser Bayo Onanuga highlights ongoing tensions between the government and crypto exchanges operating in Nigeria.
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