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Pressure Mounts: Calls for Binance Ban Intensify in Nigeria

Calls for banning major crypto platforms like Binance escalate in Nigeria as concerns over currency manipulation mount. Regulatory scrutiny and market dynamics shape the evolving landscape of cryptocurrency in the country.

Amidst growing concerns over the impact of cryptocurrency trading on the Nigerian economy, Bayo Onanuga, an adviser to President Bola Tinubu, has urged for the ban of major platforms including Binance and KuCoin. Onanuga alleges that these platforms manipulate the Nigerian naira, exacerbating its decline in the forex market.

Accusations of Currency Manipulation

In a strongly-worded social media post titled "The Naira-Dollar Manipulators," Onanuga accused Nigerians of being unpatriotic for engaging in trading activities on Binance. He called for swift action from regulatory bodies such as the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to halt the operations of crypto exchanges in the country.

Binance's Response and Regulatory Scrutiny

Despite Onanuga's assertions, Binance has distanced itself from Nigeria's forex crisis, emphasizing that its platform operates on market dynamics and does not influence currency pricing in the country. However, the exchange faces increasing regulatory scrutiny globally.

Challenges Faced by Crypto Users

Following speculations of a potential government ban on crypto platforms, Nigerian crypto users have encountered difficulties accessing various exchange websites, including Binance and OctaFX. Binance assured its users via email that it is actively engaging with regulators to address the evolving regulatory landscape.

Market Impact and Regulatory Measures

Binance's decision to limit the selling price of Tether tokens on its peer-to-peer platform further fueled speculations. However, the exchange clarified that this action was a result of an automatic system pause, not indicative of broader regulatory intervention.

The Nigerian Crypto Landscape

Nigeria has emerged as the largest peer-to-peer market globally, a trend spurred by the CBN's ban on crypto transactions by financial institutions in 2021. Despite regulatory uncertainties, a recent circular issued to banks in December 2023 lifted the ban, signaling potential shifts in the country's approach to cryptocurrency regulation.