Alleged plans by CBN to shut down all cryptocurrency websites in Nigeria

The Nigerian government is allegedly preparing to close down cryptocurrency-related websites in the nation, according to an inside source who shared the details with Techpoint Africa. This move comes after Binance, a cryptocurrency platform, ceased peer-to-peer trading on its platform.

The Central Bank of Nigeria (CBN) appears to be considering blocking Nigerians’ access to crypto websites as an attempt to prevent the devaluation of the naira, the nation’s currency. While currently unconfirmed, the source indicated that the apex bank might partner with telecommunication companies to restrict access to certain websites and applications within Nigeria.

This development surfaced following the recent suspension of peer-to-peer transactions by Binance on February 20, 2024. Numerous users complained about the inability to purchase USDT advertising on the platform, expressing their frustrations on the platform X.

Reacting to the situation, Binance issued a public statement in which they emphasized their commitment to creating a platform that is both transparent and immune to fraudulent activities and manipulations, catering to the needs of the market. However, the statement failed to offer any explanation for the abrupt suspension of cryptocurrency-related activities on their platform.

In the statement, Binance also mentioned its ongoing collaboration with local authorities, legislators, and regulators to ensure their operations are compliant with all relevant laws and regulations.

On a related note, an individual, identified as Brother Bernard on X, claimed that the Central Bank of Nigeria (CBN), National Security Agency (NSA), and the Economic and Financial Crimes Commission (EFCC) are cooperating with Binance. This collaboration, he suggests, is aimed at establishing a limit for traders dealing with Tether (USDT), a type of cryptocurrency.

On February 21, 2024, Binance shared another statement, providing an explanation for the recent suspension of P2P trading on their platform. The company revealed that it employs a system which automatically halts operations whenever there is a considerable movement in currency values.

Binance asserted that this measure is aimed at preventing potential abuses of their system. It was further disclosed that a temporary inhibition occurred the previous day which stretched the limits of their system, necessitating some crucial adjustments to be made.

Nonetheless, this step taken by Binance is viewed by many as a cooperative effort with the CBN to regulate and limit their trading activities. This has led to a decrease in users’ trust towards the platform.

Several posts on X have suggested alternatives to Binance, citing trust issues with the platform.

The Nigerian Securities and Exchange Commission (SEC) declared Binance Nigeria Limited, a cryptocurrency firm, illegal last year and warned users about the platform’s risks. Binance, though, has denied any affiliation with Binance Nigeria Limited.

Though Binance has denied any affiliation with Binance Nigeria Limited, the SEC insists it was indeed referring to the well-known cryptocurrency exchange, Binance. It remains unclear whether Binance’s statement is a response to the SEC’s declaration last year.