Nigeria has implemented a ban on accessing major cryptocurrency exchanges such as Binance, Coinbase, and Kraken, in what is supposed to be a bid to stem currency speculation and address record lows for the naira. The move, enforced by the country’s telecoms regulator, has led users to resort to VPNs in an attempt to bypass these restrictions, shedding light on concerns raised in the recent Binance indictment.

Despite the ban, the cryptocurrency market has exhibited resilience. Notably, Bitcoin’s price surged from $50,000 to $51,300, indicating the market’s ability to adapt despite regulatory challenges.

President Bola Tinubu’s government has been striving to attract foreign investment, leading to reforms that included attempts to regulate digital assets. The country previously reversed a prior ban on crypto transactions, which was motivated by concerns over money laundering and terrorism financing.

Cryptocurrency exchanges as a result emerged as crucial players in establishing unofficial market prices for the naira. However, accusations were then leveled against Binance, alleging its influence on exchange rates, prompting calls for a complete ban on crypto within Nigeria.

Nigeria ranks second globally for private wealth stored in cryptocurrency, primarily driven by young investors seeking alternatives amidst dwindling trust in the stability of the naira.

In a related development, a local Binance entity has been declared illegal by Nigeria’s Securities and Exchange Commission. This follows Binance’s payment of a $4.3 billion penalty and its founder’s resignation as CEO amid US criminal charges, further underscoring the regulatory challenges facing cryptocurrency entities operating in Nigeria.

Information for this briefing was found via Financial Times and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.