- This move aims to prevent the free fall of the naira
The Nigerian government has blocked online platforms, including Binance and other crypto firms, to counter what it perceives as ongoing manipulation of the forex market and illicit fund movements.
Telecommunication companies received a directive from the Nigerian Communications Commission (NCC) and have begun implementing the restrictions on platforms like Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken, among others.
This move aims to prevent the free fall of the local currency, with reports suggesting that these platforms were being exploited by currency speculators and money launderers for criminal activities, contributing to the weakening of the naira.
Binance, specifically mentioned, was disclaimed by Nigeria’s Securities and Exchange Commission (SEC) in September 2023 for operating illegally in the country.
Despite the warning by the regulatory agency, the firm continued its operation, attracting huge patronage especially among urban youths and suspected speculators and money launderers. Aside from suspicions of economic sabotage, officials also speak of national security concerns as the platforms are often patronised by other criminal groups including for payment of ransom.