Amidst the escalating forex crisis in Nigeria, the federal government is deliberating potential measures against online crypto platforms like Binance and others.
The move comes as authorities seek to counter what they perceive as continuous manipulation of the forex market and illicit fund flows.
The recent deterioration in the value of the Nigerian currency, with the naira hitting an unprecedented low of N1,800 to a dollar in the parallel market, has raised concerns within government circles. Officials from the presidency and regulatory bodies have disclosed that serious considerations are underway regarding actions against Binance and similar crypto firms.
Reports suggest that currency speculators and money launderers have been exploiting these platforms for illegal activities, significantly contributing to the devaluation of the naira.
Despite previous warnings issued by regulatory authorities, Binance, a prominent digital assets platform, has continued its operations in Nigeria.
The Securities and Exchange Commission (SEC) previously issued a disclaimer regarding Binance Nigeria Limited, emphasizing its unauthorized status in Nigeria.
Nevertheless, the platform persisted, drawing substantial attention, particularly from urban youths and suspected speculators.
The ongoing downward trend of the naira against the dollar has raised concerns, with artificial devaluation attributed to platforms like Binance.
The platform’s global reach often results in higher USD to NGN exchange rates, misleadingly devaluing the Naira on a global scale.
While Binance facilitates peer-to-peer transactions, it has also been associated with attracting money launderers and terrorist financiers, exacerbating the situation.
Similar accusations of currency manipulation and unethical conduct have led to sanctions against Binance in several countries, alongside an ongoing legal dispute in the United States.
If the Nigerian government decides to enforce a ban on digital asset trading platforms like Binance, it would align with actions taken by countries such as Malaysia, France, and Malta.
However, official statements on the matter have not yet been forthcoming from the Office of the National Security Adviser or representatives of Binance.
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