Nigeria reportedly plans to ban Binance, other crypto firms over their ties to forex

The Nigerian government is said to be considering blocking Binance and other crypto firms to prevent forex market manipulation and illicit fund movement.

Crypto exchange Binance and other digital asset trading platforms are risking being banned in Nigeria, as the local authorities are weighing options to curb forex market manipulation, Premium Times Nigeria has learned, citing Nigerian officials.

The report says the decision comes in response to growing concerns over criminals exploiting crypto trading platforms to undermine the stability of the naira, Nigeria’s fiat currency. Aside from economic implications, authorities have also expressed concerns about national security, citing reports of criminal organizations using crypto platforms for ransom payments.

The development follows recent measures taken by Binance, which imposed a limit on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria. In a blog announcement to Nigerian users on Feb. 20, Binance emphasized its commitment to collaboration with local authorities, saying it is “working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance.”

Binance’s move comes after the Office of the National Security Adviser and the Central Bank of Nigeria (CBN) joined forces to address challenges impacting economic stability. According to officials, the joint initiative aims to enhance oversight of local trading platforms in response to heightened volatility in the local markets.