According to the Financial Times, several cryptocurrency exchanges in Nigeria experienced user accessibility problems, which gave rise to rumors that cryptocurrency websites were being restricted.
Local media said on Wednesday that the nation’s top bank had given the Nigerian Communications Commission (NCC), the country’s telecom regulator, instructions to halt access to cryptocurrency websites like Binance, Coinbase, and Kraken. According to a different report, this development happened the day after Binance placed restrictions on peer-to-peer trades of the USDT/NGN pair, corresponding with the naira’s decline to all-time lows.
After the central bank forbade local financial institutions from facilitating direct trades three years prior, cryptocurrency exchange platforms—Binance in particular—became well-known for their peer-to-peer features. Additionally, despite the fact that the central bank recently relaxed bank regulations and contemplated licensing cryptocurrency businesses for legitimate transactions, Binance had to impose trade restrictions on Tuesday due to the naira’s sharp decline to all-time lows (roughly $1 to ~N1,900), which the government partially blamed on cryptocurrency-trading platforms.
For a large number of Nigerian cryptocurrency users, Binance and other platforms act as a hedge against the naira’s frequent depreciation. However, the recent move by the Nigerian government to impose restrictions on access to these platforms is perceived as an attempt to reclaim authority over the naira’s value.
Unofficial naira exchange rates have been heavily influenced by these exchanges; sites such as Binance frequently act as benchmarks for regional foreign exchange rates. The government wants to take control of the naira’s value and maintain its place in the financial system, so it’s restricting access to these platforms. However, the consequences of the government’s recent actions will take time to materialize.
A presidential spokesman reportedly confirmed to Bloomberg that Nigeria had issued an order directing internet service providers and telecoms to block access to cryptocurrency trading platforms. Although Binance did not state clearly that it was impacted by this directive, it did reassure users about the security of their money and the accessibility of their accounts.
“We are aware that some users are experiencing issues accessing binance.com, along with other platforms in the industry. Only users attempting to access the website are impacted, although the app is currently available,”
Binance declared.
It appears that the order to restrict access has been temporarily halted, as Binance and other cryptocurrency trading platforms, like Kraken and Coinbase, are currently accessible. Several Nigerian users of Binance had reported having trouble accessing the site in the early hours of Thursday.
