In a groundbreaking development, Nigeria has made the decision to block access to top cryptocurrency exchanges including Binance, Kraken, and Coinbase. This regulatory tactic is an attempt to halt the depreciation of Nigeria’s local currency, the Naira, as reported by the Financial Times.
The Nigerian Communications Commission (NC) has instructed telecom companies to restrict access to these crypto exchanges, reflecting the government’s intention to curb currency speculation. Concurrently, the Naira has tumbled to its lowest ever value.
The burgeoning digital asset market has marked significant growth for the industry in 2024, which numerous countries continue to adjust to. Regulatory developments around cryptocurrency have been ongoing across various regions.
In this scenario, Nigeria has chosen to counter the industry by obstructing access to major crypto exchanges, effectively reducing access to Binance, Coinbase, and Kraken. This move comes in light of the continuous devaluation of the Naira.
Whilst the country has blocked access, customers were still able to gain limited access on Thursday. This decision is a clear departure from the Nigerian government’s earlier stance on cryptocurrencies. Previously, President Bola Tinubu had expressed the belief that cryptocurrencies could boost foreign investment and fortify the rather shaky economy.
However, Nigeria is currently looking to impose stricter regulations on digital assets. Many government officials consider digital currencies like Bitcoin and Tether to be competition to traditional assets and believe their prominence has negatively affected the value of the Naira.
Recently, President Tinubu’s advisor, Bayo Onanuga, blamed Binance for usurping the Central Bank’s role as currency rate determiner through its exchange rate capabilities. Onanuga went as far as stating, “Crypto should be banned in our country”, arguing that the ongoing depreciation of their currency will persist if they don’t impede access to the exchanges.