Bayo Onanuga, an adviser to Nigeria’s President Bola Tinubu on information and strategy, has sparked controversy by advocating for the banning of Binance, KuCoin, and other cryptocurrency trading platforms in the country. Onanuga made these assertions on the X social media platform, alleging that these platforms manipulated Nigeria’s fiat currency, the naira, thereby contributing to its ongoing decline in the forex market. Speculation is rife that the government is contemplating such a ban.
In a post titled “The Naira-Dollar Manipulators,” Onanuga accused Nigerians of being unpatriotic when trading on Binance and called for swift action from the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to halt the operations of cryptocurrency exchanges in the country. He emphasized the need to prevent further manipulation of the national currency and advocated for a complete ban on crypto in Nigeria.
Binance, however, distanced itself from the forex crisis in Nigeria, asserting that its platform operates based on market dynamics and does not intend to influence currency pricing in the country. Despite reports of difficulty accessing various crypto exchange websites in Nigeria, including Binance and OctaFX, the exchange clarified that the issue only affected the online platform, assuring users that the Binance app remains functional. Binance stated that it is actively engaging with regulators to facilitate transparent dialogue regarding the cryptocurrency landscape in Nigeria.
Amidst these developments, Binance implemented a limit on the selling price of Tether (USDT) tokens on its peer-to-peer (P2P) platform, restricting traders from selling USDT above a certain threshold. However, Binance clarified that this measure was due to an automatic system pause rather than regulatory intervention.
Nigeria currently stands as the largest P2P market globally, a status that emerged following the CBN’s ban on institutions from engaging in crypto transactions in 2021. However, a circular issued to banks in December 2023 lifted the ban, allowing Nigerian banks to facilitate cryptocurrency transactions once again.
The situation underscores the complex interplay between regulatory concerns, market dynamics, and the evolving landscape of cryptocurrency adoption in Nigeria.
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