Forex Crisis: Nigerian government Bans Coinbase, OctaFX, Binance, And Other Platforms

The Nigerian government has initiated its plan to block cryptocurrency trading platforms such as Binance, OctaFX

In an effort to stop what it views as ongoing forex market manipulation and illegal money transfers, the Nigerian government has blocked Binance's and other cryptocurrency companies' websites.

The major telecom companies in the nation reportedly stated on Wednesday night that they had begun implementing the directive after receiving communication from the Nigerian Communications Commission (NCC).

Other platforms that were similarly blocked, in addition to Binance, were Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken.

As part of its efforts to stop the local currency from collapsing completely, the government is thinking of blocking the websites of Binance and other cryptocurrency companies, according to MON DIARIES' earlier report on Wednesday.

According to regulatory and presidential sources, the government took action against Binance and other cryptocurrency companies after learning of allegations that they were being used by money launderers and currency speculators to carry out illegal activities. Authorities think that a major factor in the naira's decline is the illegal activity taking place on these platforms.

The digital asset marketplace Binance acts as a conduit for peer-to-peer transactions, enabling users to express interest in buying or selling currencies of their choice.

Binance Nigeria Limited was issued a disclaimer by the Securities and Exchange Commission (SEC) of Nigeria in September 2023, stating that the platform was “neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal.”

The company kept operating despite the regulatory body's warning, drawing a lot of business, particularly from urban youth and those who were thought to be money launderers and speculators. Officials raise concerns about national security in addition to suspicions of economic sabotage because other criminal groups frequently use the platforms, sometimes in exchange for ransom payments.

Earlier on Wednesday, Binance responded by announcing that “users behaving in a manipulative way” will be kicked off the platform.