April 20, 2024
Cryptocurrency News

Binance Faces Regulatory Scrutiny in Nigeria amid Calls for Crypto Ban

Bayo Onanuga, an adviser to Nigeria’s President Bola Tinubu on information and strategy, has ignited a contentious debate by calling for a ban on cryptocurrency trading platforms including Binance, KuCoin, and others within the country.

Onanuga Urges EFCC and CBN to Halt Cryptocurrency Exchanges

Onanuga's call for the ban surfaced on X social media platform where he alleged that these platforms have been manipulating Nigeria's fiat currency, the naira, contributing to its ongoing decline in the forex market. The adviser accused users of being unpatriotic when engaging in trading activities on Binance, particularly targeting the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to intervene swiftly and put a halt to cryptocurrency exchanges in the country.

In his post titled “The Naira-Dollar Manipulators,” Onanuga urged for urgent action, stating: "The EFCC and the CBN should move against these platforms trying to manipulate our national currency to Ground Zero. Crypto should be banned in our country, or else this bleeding of our currency will continue unabated."

He further highlighted the regulatory scrutiny Binance has faced in various jurisdictions and argued against granting it the authority to determine the value of the naira on its platform. However, Binance countered these claims, emphasizing that its platform operates based on market dynamics and is not intended to influence currency pricing in Nigeria.

The Naira-Dollar manipulatorsI chanced on an X post Tuesday night by one Brother Bernard @Mikael C Bernard who railed against what he called the order of the EFCC, NSA on Finance to set a cap on traders selling USD tokens for Naira equivalent.He disclosed that token sellers… pic.twitter.com/c9YBjawJMz

— Bayo Onanuga (@aonanuga1956) February 21, 2024

Crypto Users in Nigeria Face Exchange Access Issues

The call for a ban comes amidst reports of difficulties faced by crypto users in Nigeria accessing various exchange websites, including Binance and OctaFX, fueling speculation of an impending government intervention. Binance, responding to the situation, reassured users via email that while the online platform experienced disruptions, its app remained operational. The exchange affirmed its commitment to engaging with regulators to address concerns and promote transparent dialogue regarding cryptocurrency operations in the country.

Furthermore, recent issues arose regarding the trading of USDT tokens on Binance's peer-to-peer (P2P) platform, with traders experiencing limitations in selling above a certain price threshold. Binance attributed this to an automatic system pause, refuting claims of deliberate manipulation.

This article was written by Tareq Sikder at www.financemagnates.com.