- The Nigerian government has imposed a ban on Binance and other crypto exchanges.
- The development comes on the heels of the USD-NGN price cap debacle.
- Several users have reported losing access to the Binance app and website.
Binance, the world’s largest crypto exchange, has been thrust under an intense regulatory spotlight over the past year, marked by sanctions from financial authorities across the globe. Despite the exchange’s renewed efforts to aid compliance, averting drama seems unfeasible.
On February 21, 2024, Binance sparked outrage among the Nigerian crypto community after imposing a price cap on the USDT P2P exchange rate as part of regulatory compliance efforts. However, following intense backlash, the exchange reverted the move, allowing transactions to continue.
While this was expected to calm the storm, it may have only worsened situations for the exchange.
Is Binance Banned in Nigeria?
On Thursday, February 22, several Nigerian Binance users raised concerns about their inability to access the exchange’s application.
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The grievances came on the heels of reports that the Nigerian government instructed telecommunication service providers within the country to restrict access to all crypto exchange platforms as part of its efforts to stabilize its fast-declining currency.
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Addressing the concerns, Binance emailed users that only its website platform has been impacted, and operations on its application remain stable. The exchange assured users their funds were safe and emphasized ongoing engagement with local regulatory authorities.
However, the situation has escalated further, with calls emerging for the outright ban of the exchange.
Nigerian Official Calls for Binance Ban
Highlighting the exchange’s flawed regulatory reputation, Presidential aide Bayo Onanuga emphasized that Binance should not be allowed to operate within the country.
“Binance, which is blatantly setting exchange rate for Nigeria, hijacking CBN role, is a cryptocurrency trading platform, and suffers access limitations from multiple jurisdictions, such as the US, Singapore, Canada, and the UK,” he stated.
Onanuga called on the Nigerian Economic and Financial Crimes Commission (EFCC) to crack down on Binance and other exchanges, such as KuCoin and Bybit, believing it would prevent further “manipulation” of the Naira.
On the Flipside
- Local Nigerian crypto platforms are also reportedly affected by the restrictions.
- The Nigerian crypto community has opposed the government’s move to ban crypto exchanges, asserting its representation of another tyrannical approach to the country’s troubles.
- The Nigerian government banned crypto in February 2021 before lifting the restrictions in December 2023.
Why This Matters
The imposed restrictions on crypto exchanges in Nigeria will limit investor accessibility to exchanges and trading services, potentially impacting Nigeria’s reputation as one of the largest crypto markets in the world.
Read more on the regulatory standards in Nigeria:
Nigerian SEC Cranks Up the Heat on Local Crypto Exchanges
Read more about how these protocols are bringing advanced DeFi solutions:
How Orbs in Enhancing On-Chain Derivatives with IntentX
