Crypto Regulations Tighten in Nigeria

Crypto exchange behemoths are facing serious scrutiny in Nigeria, as the country aims to clamp down on crypto transactions. Though Nigeria is sought to be the most crypto-savvy nation ahead of the United States and European countries per a ConsenSys data last year, the country has been recently tightening crypto regulations to circumvent financial crimes.

Regulatory Restrictions in Nigeria

In line with this, Nigeria has directed telcoms to prevent access to crypto websites such as Binance, Coinbase, and OctaFX. The restriction aims at slowing crypto speculation activities in the country.

Reversal of the Crypto Ban by the Central Bank of Nigeria

This move notably comes a few months after the Central Bank of Nigeria lifted its ban on crypto transactions. The CBN instructed lenders to open accounts for crypto firms, marking a reversal of the ban it imposed in 2021. In 2021, CBN became one of the first central banks to issue a central bank digital asset (CBDC).

Responses from Crypto Exchange Platforms

Following complaints from users in Nigeria, Binance exchange noted that it has initiated efforts to ensure regulatory compliance. Binance has released statements emphasizing its dedication to regulatory compliance and user protection.

President’s Adviser Calls to End Exchange Operations

In a separate note, the Special Adviser to Nigerian President Bola Tinubu on Information and Strategy, Mr. Bayo Onanuga, accused crypto exchanges of manipulating the naira leading to the continued fall in the forex market. The advisor urged the Economic and Financial Crimes Commission (EFCC) and the CBN to take quick action against them.

In a long post, he noted that Binance, facing regulatory showdown in many countries, should not be allowed to dictate the value of the Naira. “Other crypto platforms such as Kucoin, Bybit should be banned from operating in our cyberspace,” he added. “FX platform Aboki should be re-banned.”