The Nigerian government has taken action to stop the manipulation of the forex market and the illegal movement of funds by blocking the online platforms of major crypto firms, such as Binance.
The Nigerian Communications Commission (NCC) instructed telecom companies to block access to these platforms, including Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken.
This decision was made to address the decline of the local currency, the naira, due to concerns about currency speculation and money laundering activities on these platforms.
Currently, Binance and OctaFX are inaccessible online.
Binance, a prominent digital asset platform, has been under scrutiny by Nigerian authorities since September 2023 when the country’s Securities and Exchange Commission (SEC) disclaimed its operations, labeling them as ‘illegal’.
Despite the warning, Binance continued its activities, attracting a significant number of users, especially urban youths, suspected speculators, and money launderers.
In addition to economic concerns, officials have also expressed concerns about national security, pointing out that criminal groups use the platform for activities like ransom payments.
In response to these issues, Binance has stated its commitment to collaborating with local authorities and regulators to address compliance issues, including taking action against manipulative behavior on its platform.
The Nigerian government’s decision to block access to these crypto platforms shows its determination to maintain stability in the forex market and fight financial crimes.
However, this action has sparked discussions about the impact on digital asset trading and the broader financial landscape in Nigeria.
