Nigeria imposes restrictions on major crypto exchanges
Nigeria imposes restrictions on major crypto exchanges
Nigerian authorities are taking active measures to restrict access to the websites of cryptocurrency exchanges such as Binance, OctaFX, Coinbase, and others.
The decision comes after the Central Bank of Nigeria issued guidelines on the regulation of digital asset operators in December 2023, lifting a ban on cryptocurrency transactions imposed in 2021.
According to a report in the Nigerian newspaper Business Day, the country's authorities ordered telecommunications companies to block access to the websites of prominent cryptocurrency exchanges in an effort to reduce currency speculation activity in the country.
In response, cryptocurrency exchange Binance said its platform was not designed to price currencies.
"It is important to note that foreign exchange rates are affected by various complex factors over which Binance has no control," the exchange said in a statement.
The platform also confirmed that it is working with local authorities and regulators to enforce cryptocurrency regulations.
Many Nigerian users of Binance have taken to social media to complain about the inability to buy dollars on the platform.
X (Twitter) user, @MikaelCBernard, wrote on his page, "No more dollars on Binance... You can only sell, but not buy."
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The platform explained that it had suspended transactions to prevent price suppression, denying accusations that currency speculation was flourishing on its platform.
It is worth noting that the potential blockage of platforms like Binance raises questions about the availability of digital assets in Nigeria and the sustainability of the country's crypto community.
Many market participants have already stated that what is needed is a strategy for a balanced approach to market regulation that encourages innovation while cracking down on currency manipulation and illicit financial activities.
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