Some cryptocurrency exchanges in Nigeria have faced accessibility issues for users, prompting speculation of restrictions being imposed on crypto sites, Financial Times mentionted.
On Wednesday, the local media mentionted that Nigeria’s telecommunications regulator, the Nigerian Communications Commission (NCC), has been instructed by the country’s apex bank to suspend access to crypto sites including Binance, Coinbase and Kraken. This development came a day after Binance imposed limits on peer-to-peer transactions trading the USDT/NGN pair, coinciding with the naira falling to record lows, per report.
Cryptocurrency exchange platforms, particularly Binance, have become popular for their peer-to-peer functionality, enabling instant transactions after the central bank banned local financial institutions from facilitating such transactions three years ago. And although the central bank recently lifted up restrictions on banks and the possibility of licensing crypto companies for legal crypto trading, the recent sharp fall of the naira to record lows (around $1 to ~N1,900) — partly attributed by the government to crypto trading platforms — have pushed Binance to impose trade restrictions on Tuesday.
For many cryptocurrency users in Nigeria, Binance and other platforms serve as a hedge against the frequent devaluation of the naira for many cryptocurrency users in the country. However, for the Nigerian government, its recent decision to restrict access to these platforms is seen as a move to regain control over the naira’s valuation.
These exchanges have played an important role in setting unofficial exchange rates for the naira, with platforms such as Binance often serving as benchmarks for local exchange rates. By restricting access to these platforms, the government aims to assert authority over the valuation of the naira and stabilize its position in the financial market. The long-term effects of the government’s recent actions, however, are yet to manifest.
According Bloomberg, a presidential spokesman confirmed Nigeria’s issuance of a directive instructing telecommunications and internet service providers to block access to cryptocurrency trading platforms. Binance did not explicitly acknowledge that it was affected by this directive. However, it assured users of the accessibility of their accounts and the safety of their funds.
“We are aware that some users are experiencing issues accessing binance.com, along with other platforms in the industry. Only users trying to access the website are affected, although the app is currently available,” Binance said.
While several Binance users in Nigeria reported difficulties accessing the site in the early hours of Thursday, it appears that the directive to restrict access has been temporarily suspended as Binance and other cryptocurrency trading platforms, including Kraken and Coinbase, are currently accessible .
