Nigeria’s government rails against crypto as naira plummets

Nigeria’s fiat currency is experiencing a significant decline in value against major foreign currencies, and the government is blaming cryptocurrency.

On Feb. 21, Binance stirred controversy within the Nigerian crypto community by imposing a price cap on the USDT P2P exchange rate as part of its compliance efforts.

In response to widespread backlash, the exchange quickly reversed this decision, allowing transactions to resume as usual.

While the intention behind this action was to ease tensions, it might have unintentionally worsened the situation for Binance.

This occurred as the government moved to block cryptocurrency platforms and specifically targeted the Binance website and a couple of other forex trading platforms, citing its association with Nigeria’s inflationary pressures.

Amidst mounting concerns, several Nigerian Binance users reported difficulties accessing the exchange’s application on Feb. 22.

These grievances emerged all while the Nigerian government had been instructing telecommunication service providers to block access to all cryptocurrency exchange platforms as part of its efforts to stabilize the country’s rapidly depreciating currency.

To quell user concern, Binance sent reassurance emails stating that while its platform experienced disruptions, operations on its app continued without impact.

The exchange emphasized the security of users’ funds and reiterated its commitment to maintaining dialogue with local regulatory authorities.

However, the situation escalated further when calls emerged for the outright ban of Binance within Nigeria. And, most recently, Nigeria’s House of Representatives Committee on Financial Crimes is looking to question Binance CEO Richard Teng for alleged terrorism financing and money laundering.

Before that, Presidential aide Bayo Onanug

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Author: Ogwu Osaemezu Emmanuel

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