The Nigerian government is reportedly taking steps to shut down cryptocurrency websites within the country, potentially aiming to block Nigerians from accessing such platforms to counteract the depreciation of the naira.
According to Techpoint Africa, telecommunications companies might receive instructions to prevent people from visiting these cryptocurrency sites.
This development follows the suspension of peer-to-peer activities by the cryptocurrency platform Binance on February 20, 2024. Users voiced their concerns on social media platform X, noting the unavailability of USDT (Tether) to buy advertisements on the platform.
In response, Binance issued a statement expressing its commitment to providing a market-driven, fraud-free, and manipulation-free platform without specifying the reason for suspending crypto activities. The platform emphasized collaboration with local authorities, lawmakers, and regulators to ensure compliance.
Interestingly, an X user, identified as Brother Bernard, suggested that the Central Bank of Nigeria, the National Security Agency, and the Economic and Financial Crimes Commission are collaborating with Binance to set a cap for USDT traders.
In a subsequent statement on February 21, 2024, Binance clarified the suspension of P2P trading, attributing it to the automatic pause triggered by significant currency movements. The company explained that this feature aims to prevent system abuse and noted a temporary suppression on the previous day that reached system limits, requiring adjustments.
Despite Binance’s explanations, some users view the move as a collaboration with the CBN to control their trading activities, leading to a reduction in trust in the platform. Alternative platforms to Binance have been discussed on X as users seek options they consider more trustworthy.
It’s worth mentioning that last year, the Nigerian Securities and Exchange Commission declared Binance Nigeria Limited illegal in the country, warning users about the associated risks. Binance denied affiliation with the entity, Binance Nigeria Limited, while the SEC confirmed that it referred to the popular crypto exchange Binance. The connection between Binance’s recent actions and the SEC’s declaration remains unclear.
