Nigeria’s Central Bank and NCC Clamp Down on Binance and Crypto Exchanges Amid Currency Crisis

Nigeria’s Central Bank and NCC Clamp Down on Binance and Crypto Exchanges Amid Currency Crisis

In response to reports of the Nigerian government’s alleged restrictions on crypto exchanges, Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has criticized the move, emphasizing its potential negative impact on both the crypto space and the broader economy.

While no official confirmation has been provided by government agencies like the Central Bank of Nigeria (CBN) or the Nigerian Communications Commission (NCC), users, including SiBAN members, faced challenges accessing their crypto wallets on affected exchanges.

Challenges Faced by Crypto Users

Iwuno acknowledged the challenges faced by individuals attempting to log in to their crypto accounts on the reported date, with many experiencing difficulties accessing platforms.

However, the lack of clear responsibility attribution from government agencies has left the situation ambiguous.

Regardless, Iwuno asserted that if the reported restrictions are true, it represents a misguided move with detrimental consequences.

Government’s Attempt to Stabilize the Naira

The reported restrictions are said to be part of the government’s effort, in collaboration with the Nigerian Communications Commission, to stabilize the national currency, the naira.

The directive allegedly instructed telecom companies to limit access to crypto companies’ websites and applications.

This move is seen as a response to concerns about the manipulation of the foreign exchange market and the devaluation of the naira by speculators using peer-to-peer marketplaces.

SiBAN’s Call for Regulation

President Iwuno reiterated SiBAN’s longstanding call for crypto regulation in Nigeria.

Rather than resorting to outright bans and restrictions, he emphasized the need for a regulatory framework that fosters innovation and growth within the crypto space.

Iwuno stressed that regulating the industry is crucial for the economic development of both the government and the crypto sector.

Economic Growth Through Regulation

Iwuno argued that stifling or banning cryptocurrencies would be counterproductive, emphasizing that the absence of proper crypto regulations could deprive the Nigerian economy of the benefits associated with digital assets.

SiBAN remains committed to supporting the growth of blockchain technology and expressed its willingness to collaborate with the government to position Nigeria favorably in the global arena of digital assets, blockchain technology, and Web3 innovation.

Conclusion: Collaborative Path for Growth

SiBAN’s president urged a collaborative approach, urging the government to work with stakeholders to create regulations that promote progress and benefit both the crypto industry and regulators.

He highlighted the potential positive impact on the economy, job creation, and the nation’s standing in the digital assets sector if the right regulatory measures are implemented.

The dialogue between the government and crypto stakeholders remains critical for fostering a conducive environment for growth and innovation.

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