Some cryptocurrency exchanges in Nigeria are facing user accessibility issues, leading to speculation that restrictions may be imposed on crypto sites, the Financial Times reported.
On Wednesday, local media reported that Nigeria's telecommunications regulator, the Nigerian Communications Commission (NCC), received instructions from the country's apex bank to suspend access to cryptocurrency websites such as Binance, Coinbase and Kraken. It was reported that. According to another report, this development comes a day after Binance imposed restrictions on peer-to-peer trading on the USDT/NGN pair, coinciding with the naira falling to record lows.
Cryptocurrency sites, particularly Binance, gained popularity for their peer-to-peer functionality that allows for direct crypto trading after the central bank banned local financial institutions from facilitating crypto trading three years ago. And the central bank recently lifted up They were considering tightening regulations on banks and granting licenses to crypto companies for legal crypto trading, but the recent naira has fallen to unprecedented lows (from about $1 to about 1,900 naira). The steep decline (partially blamed on government-funded crypto trading platforms) is the measure imposed on Binance. Trade restrictions will go into effect on Tuesday.
For many Nigerian crypto users, Binance and other platforms serve as a hedge against frequent devaluations of the naira. However, for the Nigerian government, the recent decision to restrict access to these platforms is seen as a move to regain control over the naira's valuation.
These exchanges play a key role in determining the Naira's unofficial exchange rate, and platforms like Binance often serve as benchmarks for local foreign 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 financial markets. However, the long-term effects of the government's recent actions are not yet clear.
According to Bloomberg, the presidential spokesperson confirmed that Nigeria has issued a directive directing telecommunications carriers and internet service providers to block access to virtual currency trading platforms. Binance has not explicitly acknowledged that it has been affected by this directive. However, access to users' accounts and the safety of their funds were guaranteed.
“We are aware that some users are experiencing issues accessing binance.com and other platforms in the industry. The app is currently available, but those affected are accessing the website. only for users who intend to do so,” Binance said.
Multiple Binance users in Nigeria reported being unable to access the site early Thursday morning, but the directive restricting access is temporary as Binance and other crypto trading platforms such as Kraken and Coinbase are currently accessible. It seems that it has been stopped.