A presidential adviser in Nigeria, Bayo Onanuga, has urged for the banning of cryptocurrency trading platforms like Binance and KuCoin in the country, alleging manipulation of the Nigerian naira.
Accusations of Currency Manipulation
Onanuga accused these platforms of manipulating the value of the Nigerian naira, contributing to its decline in the forex market. He labeled Nigerians trading on Binance as unpatriotic and called for swift action from regulatory bodies like the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN).
In a social media post titled “The Naira-Dollar Manipulators,” Onanuga demanded immediate action to halt cryptocurrency exchange operations in Nigeria. He advocated for a complete ban on crypto activities in the country to prevent further devaluation of the currency.
Binance’s Response
While Binance faces regulatory scrutiny in various countries, it distanced itself from Nigeria’s forex crisis, stating that its platform operates based on market dynamics rather than influencing currency pricing. However, recent difficulties accessing crypto exchange websites in Nigeria, including Binance, have sparked speculation of a potential government ban.
Binance Addresses User Concerns
In response to the situation, Binance assured its users via email that the issue only affected online platforms, with the Binance app remaining functional. The exchange emphasized ongoing engagement with regulators to address concerns and promote transparency in Nigeria’s cryptocurrency landscape.
Amidst the turmoil, Binance set a limit on the selling price of Tether (USDT) tokens on its peer-to-peer (P2P) platform, causing inconvenience for traders. However, Binance clarified that the price peg was an automatic system pause, dispelling rumors within the local crypto community.
Nigeria emerged as the largest P2P crypto market globally following the CBN’s ban on crypto transactions by institutions in 2021. However, a subsequent circular in December 2023 lifted the ban, allowing Nigerian banks to facilitate cryptocurrency transactions once again.
