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Nigerian Government Cracks Down on Binance and others Amid Forex Crisis

Binance Ceases NGN Services Nigerian Government Cracks Down on Binance and others Amid Forex Crisis

In a bid to tackle what it perceives as ongoing manipulation of the forex market and illicit fund movements, the Nigerian government has taken decisive action by blocking several online platforms, including Binance and OctaFX.

Sources within major telecommunications companies revealed to Newsmen that the Nigerian Communications Commission (NCC) has instructed telcos to block access to these platforms.

Apart from Binance, other platforms such as Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken have also been affected by the government’s directive.

The decision to target Binance and other crypto firms stems from concerns over reports of currency speculation and money laundering activities occurring on these platforms, which authorities believe are contributing to the weakening of the naira.

Despite warnings from regulatory bodies, such as the Securities and Exchange Commission (SEC), regarding the illegality of their operations in Nigeria, firms like Binance have continued to operate, attracting significant patronage, particularly among urban youths and suspected speculators.

IMG 20240222 080721 jpg REPORT AFRIQUE International Nigerian Government Cracks Down on Binance and others Amid Forex Crisis
Nigerian Government Cracks Down On Binance And Others Amid Forex Crisis 7

Binance has responded to the government’s action by pledging to remove users engaging in manipulative behavior and to collaborate with local authorities and regulators to ensure compliance with regulations.

Meanwhile, in a separate development, the Nigerian government announced plans to raise $10 billion to enhance liquidity in the foreign exchange market, with Vice President Kashim Shettima outlining strategies to double the GDP growth rate over the next eight years.

The naira’s value plummeted to an all-time low of N1,900 per dollar at the parallel market amidst concerns over supply constraints. However, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the local currency saw a slight appreciation to N1,551.24.

Amidst these developments, the Office of the National Security Adviser has directed law enforcement agencies to take firm action against individuals engaged in foreign exchange market speculation, citing the need to safeguard Nigeria’s economic stability from speculative activities that undermine the effectiveness of measures implemented by the Central Bank of Nigeria.

This Article is Fact-Checked. See Policy.
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