Bayo Onanuga, an adviser to President Bola Tinubu, has urged for the prohibition of trading platforms like Binance and KuCoin in Nigeria. On social media platforms, Onanuga accused these platforms of manipulating Nigeria's fiat currency, the Naira, leading to its depreciation in the foreign exchange market. His call for a ban comes amid growing speculation that the government is contemplating such action. In a post titled "Naira Dollar Manipulator," Onanuga criticized Nigerians for trading on Binance and called on regulatory bodies like the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to swiftly halt cryptocurrency exchanges in the country.
According to Onanuga, platforms like Binance, which are under regulatory scrutiny in multiple countries, should not have the authority to influence the value of the Naira on their cryptocurrency trading platforms. He emphasized the need for regulatory action to prevent further manipulation of the country's currency. However, Binance has distanced itself from Nigeria's foreign exchange crisis, stating that its platform operates on market-driven principles and does not intend to dictate the pricing of Nigerian currencies.
Cryptocurrency users in Nigeria have reported difficulties accessing various trading websites, including Binance and OctaFX, amidst speculation about a potential ban by the government. Binance responded to these concerns, assuring users that the issue only affects the online platform and that its app will continue to function normally. The exchange emphasized its commitment to working with regulators to facilitate an open and transparent dialogue on managing Nigeria's evolving cryptocurrency landscape.
Binance has implemented a limit on the selling price of Tether (USDT) on its peer-to-peer (P2P) platform to prevent traders from selling USDT at prices exceeding 1,802 Naira per USDT. The exchange clarified that this price peg was due to an automatic system pause, contrary to speculation within the local crypto community. Nigeria currently stands as the world's largest P2P market, despite the Central Bank's ban on institutions from engaging in cryptocurrency transactions in 2021. However, a recent notification to banks in December 2023 lifted this ban, allowing Nigerian banks to facilitate cryptocurrency transactions.
