Nigeria has made a significant move by blocking access to major cryptocurrency exchanges, including Binance, Kraken, and Coinbase. This decision, aimed at curbing the depreciation of the local currency, the Naira, comes amidst a challenging economic climate for the country.
According to a report from the Financial Times, the Nigerian Communications Commission (NC) has instructed telecom companies to restrict access to these exchanges. This move is part of the government’s efforts to combat currency speculation, as the Naira has recently hit record lows.
The cryptocurrency market has experienced significant growth in 2024, but many countries are still grappling with how to regulate this emerging asset class. Nigeria’s decision to block access to these exchanges represents a significant step in its approach to digital assets.
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Previously, President Bola Tinubu had viewed cryptocurrencies as a means to attract overseas investment and strengthen the economy. However, the government’s stance has shifted, with calls for increased regulation and concerns that digital assets like Bitcoin and Tether are exacerbating the Naira’s decline.
Bayo Onanuga, an advisor to President Tinubu, criticized Binance for its impact on the Central bank’s ability to set exchange rates, stating that crypto should be banned in the country to prevent further currency devaluation. As Nigeria navigates the challenges posed by the digital asset market, the government is taking steps to protect its economy and stabilize the Naira.