The Nigerian government has mandated telecom and internet service providers to restrict access to various crypto exchanges, including Binance, Coinbase, and Kraken.
This is a response to Nigerians’ growing reliance on cryptocurrencies to safeguard against the frequent depreciation of the naira, the national currency.
According to a recent article by Premium Times, a local digital news outlet, telecom operators have begun to enforce this directive. Binance, in a communication with Bloomberg, acknowledged that Nigerian users were encountering difficulties in accessing its site while emphasizing the safety of its users’ funds despite these access issues.
Coinbase, on the other hand, is challenging these claims. In a statement to CoinDesk, the company indicated that preliminary findings from their investigation suggest that Coinbase.com might still be accessible in Nigeria. However, the company is continuing to look into the matter.
The directive comes in the wake of a June announcement by Nigeria’s Securities and Exchange Commission, which declared Binance’s operations in the nation unauthorized. The directive starkly contrasted statements made in late 2022 about potential collaborations between Nigerian officials and cryptocurrency exchanges to create a digital economic zone for exploring blockchain technology.
The latest action by Nigerian regulators is part of a broader international effort to establish more stringent oversight of the cryptocurrency industry. The global regulatory push follows a tumultuous 2022, marked by a significant downturn in cryptocurrency values, leading to numerous bankruptcies, scandals, and substantial financial losses for investors. In response, regions like the European Union are advancing or have already implemented new regulations to oversee this asset class.