Updated on February 22 at 9:30 am UTC: Binance’s response to customers has been added in the screenshot.
An adviser to President Bola Tinubu of Nigeria has called for the banning of Binance, KuCoin, and other trading platforms in the country. Bayo Onanuga, the president’s adviser on information and strategy, took to social media to accuse these platforms of manipulating the Nigerian naira, which has contributed to the currency’s decline in the forex market. There are speculations that the government is considering a ban.
In a post titled “The Naira-Dollar Manipulators,” Onanuga criticized Nigerians for trading on the Binance platform, calling them unpatriotic. He urged the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to quickly shut down cryptocurrency exchanges in the country. Onanuga argued that Binance, which is under regulatory scrutiny in several countries, should not have the authority to determine the value of the naira on its crypto exchange platform. However, Binance distanced itself from the forex crisis in Nigeria, stating that its platform is “market-driven and not intended to be a proxy for currency pricing in Nigeria.”
Crypto users in Nigeria have reported difficulties accessing various crypto exchange websites, including Binance and OctaFX. This development has led to speculation about a possible government ban on crypto platforms.
Binance responded to this situation by sending an email to its users, acknowledging the issue and clarifying that it only affected the online platform, while the Binance app remained functional. The exchange assured users that it is actively engaging with regulators to have an open and transparent dialogue about managing cryptocurrency in the country.
In another development, Binance set a limit on the selling price of Tether (USDT) tokens on its peer-to-peer platform, preventing traders from selling USDT above 1,802 naira per USDT. The exchange explained that this price peg was due to an automatic system pause, contrary to speculation by the local crypto community.
Nigeria currently holds the largest peer-to-peer market in the world, which arose after the CBN banned institutions from buying and selling crypto in 2021. However, a circular sent to banks in December 2023 lifted the crypto ban on Nigerian banks, allowing them to facilitate cryptocurrency transactions.
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