The Nigerian government is reportedly considering taking action against Binance and other cryptocurrency firms in order to prevent manipulation of the forex market and illicit movement of funds.
According to officials in Nigeria, there is a possibility that crypto exchange Binance and other digital asset trading platforms may be banned in the country, as authorities are examining ways to combat forex market manipulation. This decision is said to be a response to concerns about criminals using crypto trading platforms to destabilize Nigeria’s fiat currency, the naira. Alongside economic concerns, there are also worries about national security, with reports indicating that criminal organizations are using crypto platforms for ransom payments.
The recent actions by Binance, such as imposing limits on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria, are part of its efforts to comply with local regulations. In a blog post addressed to Nigerian users on Feb. 20, Binance reiterated its commitment to working closely with authorities, lawmakers, and regulators to ensure compliance with the law.
This move from Binance comes in light of collaboration between the Office of the National Security Adviser and the Central Bank of Nigeria to address issues affecting economic stability. The joint effort aims to strengthen oversight of local trading platforms in response to increased volatility in the Nigerian markets.
For more information, the Nigerian central bank has recently lifted the ban on crypto transactions. Stay updated by following us on Google News.