In what is certainly a notable move for the country, Nigeria has blocked access to crypto exchanges Binance, Kraken, and Coinbase. Indeed, the country has taken the step to curb the slide of its local currency, according to a report from the Financial Times.
The report notes that the Nigerian Communications Commission (NC) has ordered telecom companies to limit access to the three cryptocurrency exchanges. The decision was made as the government has attempted to limit currency speculation. Meanwhile, Nigeria’s Naira has fallen to record lows.
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Nigeria Restricts Access to Binance, Kraken, and Coinbase
The overall prevalence of the digital asset market in 2024 has been a massive development for the industry. However, many countries across the globe are still learning to navigate the new asset class. Specifically, the ongoing development of regulatory standings has been an ongoing process for a plethora of regions.
Subsequently, Nigeria has taken a rather large step in its response to the industry by blocking access to prominent crypto exchanges. Indeed, it has limited access to Binance, Coinbase, and Kraken according to a report. The decision was made amid the ongoing decline in the value of the country’s local currency, the Naira.
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The report notes that the country has blocked access to the exchanges, with consumers gaining only limited access on Thursday. Conversely, the action is a significant reversal of the Nigerian government’s views on cryptocurrencies. President Bola Tinubu had previously observed the asset as a way to increase overseas investment. Therefore, strengthening what has been a fragile economy.
However, the nation is now seeking increased regulation on digital assets within Nigeria. Furthermore, many within the government have observed specific assets like Bitcoin and Tether as rivals to traditional assets. Subsequently, they have perceived their currency slide as being aided by digital asset prominence.
On Wednesday, President Tinubu’s advisor, Bayo Onanuga, accused Binance of hijacking the Central bank’s role as currency rate setter through its exchange rate. “Crypto should be banned in our country,” he said. Moreover, he added that “this bleeding of our currency will continue unabated,” if they do not halt access to the exchanges.