The Federal Government has taken action against online platforms like Binance and others in the cryptocurrency sector, alleging forex market manipulation. Binance, a digital assets platform facilitating peer-to-peer transactions, allows users to buy and sell currencies.
In February 2021, the Central Bank of Nigeria (CBN) directed financial institutions to close accounts involved in cryptocurrency transactions and warned against dealing in crypto assets due to concerns over money laundering, terrorism financing, cybercrime, and volatility.
Despite the ban, the CBN reversed its stance in December 2023, asking banks to ignore the previous directive. The recent move against crypto websites aims to curb currency speculation, with Binance clarifying that its platform is not for pricing currencies.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, argued for banning Binance and other crypto platforms in Nigeria, citing restrictions in multiple jurisdictions. In response, Binance stated that its platform does not determine FX rates and provides a peer-to-peer platform, not a pricing tool.
