The Nigerian government has banned access to prominent cryptocurrency exchanges including Binance and Coinbase in a move aimed at stabilizing the Naira. 

As a result of concerns over foreign exchange (FX) market manipulation, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have instructed telecom companies to block access to crypto firms, their websites, and apps.

According to local authorities, Nigerian users are now unable to access major crypto platforms such as Binance, Kraken, and Coinbase through local networks. Even initial access through certain apps was later revoked, intensifying the impact of these measures.

Government officials, including Bayo Onanuga, the Special Adviser to the President on Information and Strategy, have called for regulatory action, blaming Binance for setting exchange rates and operating without oversight.

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Government Measures and Response

The government has taken multiple measures to address the situation, including instructing the Economic and Financial Crimes Commission to arrest Bureau de Change operators engaged in speculative activities.

The decision has sparked widespread discontent among many Nigerians, raising questions about whether it can effectively address economic issues such as the Naira's depreciation against the dollar.

Before the restriction, the spot rate on Binance was approximately N1,850/$.

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Binance's Response and Dialogue with Regulators

In response to user complaints about the inability to buy dollars on their platform, Binance has reaffirmed its commitment to market-based transparency. 

The exchange temporarily halted transactions to stabilize prices and refuted claims that its platform promoted currency speculation.

Binance is currently engaged in discussions with local regulators, policymakers, and other stakeholders to foster a transparent dialogue on cryptocurrency and financial markets.

The ban represents a stark shift from just over a year ago when the CBN prohibited crypto transactions involving banks, exchanges, and individuals. However, in December 2023, the CBN lifted these restrictions on banks facilitating cryptocurrency transactions.