Binance, the world’s largest cryptocurrency trading platform, has confirmed the blockade of its website for Nigerian users. This move, disclosed by Binance in a statement on Thursday, comes amidst growing frustration among Nigerian users who have reported difficulties accessing the platform’s website.
“We are aware that some users are experiencing issues accessing binance.com, along with other platforms in the industry,” Binance acknowledged, addressing concerns raised by Nigerian users regarding the accessibility of its website.
Clarifying the extent of the blockade, Binance emphasized that only users attempting to access the platform via its website were affected, reassuring users that the app remained functional for accessing the platform.
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“Only users attempting to access the website are impacted, although the App is currently available. Importantly, all user funds are secure and accounts can still be accessed,” Binance assured its users.
In its commitment to compliance with local regulations and laws, Binance reiterated its dedication to engaging with regulators, policymakers, and other stakeholders to facilitate open and transparent dialogue on managing its cryptocurrency exchange platform.
This development follows a series of regulatory actions taken by the government, under the leadership of President Bola Tinubu, aimed at stabilizing the declining Nigerian currency, the naira.
The government’s clampdown on cryptocurrency platforms has drawn criticism from Nigerian Binance users, especially considering the recent lifting of the ban on cryptocurrency trading by the Federal Government less than two months ago.
Binance had previously confirmed its cooperation with the Federal Government to restrict dollar-naira trading on its platform. This collaboration led to measures such as disabling the sell option for Nigerian users and capping the buy option on Tuesday. The exchange imposed a cap of $1802 on the buy option for Nigerian users, sparking panic among its users.
Subsequently, the naira experienced some gains against the dollar, trading at N1,600 to a dollar after dipping to N1,900 against the dollar on crypto exchanges.
Nigeria ranks among countries with the largest population of cryptocurrency traders globally, with “more than half of its adult population” engaging in monthly cryptocurrency trading, according to Binance. However, the government’s actions, including the blocking of Binance’s website, signal a broader crackdown on cryptocurrency operations within the country.
While the blockade of Binance’s website by the Federal Government has not been officially announced, presidential spokesperson Bayo Onanuga hinted at the government’s intentions in a tweet on Wednesday. Onanuga called for stringent measures against cryptocurrency platforms, accusing them of manipulating the national currency and advocating for a ban on cryptocurrency trading in the country to prevent further devaluation of the naira.
Besides this move, the Nigerian government has also launched a clampdown on currency exchanges across the country. Scores of Bureau De Change operators were arrested yesterday by security and anti-graft agents, in a desperate move by the government to curtail the free falling of the naira that it has attributed to the activity of speculators.
Given Nigeria’s history with digital assets, the future of cryptocurrency trading in Nigeria remains uncertain amidst heightened regulatory scrutiny and government clampdown.