FG bans Binance, OctaFX, others over forex crisis

The Federal Government (FG) has taken action against Binance and other cryptocurrency firms’ online platforms for alleged forex market manipulation.

Binance is a digital asset platform that acts as a window for peer-to-peer transactions, allowing users to display their willingness to sell or acquire currencies of their choosing.

On February 5, 2021, the Central Bank of Nigeria (CBN) urged banks, non-bank financial institutions (NBFIs), and other financial institutions (OFIs) to cancel accounts for individuals or businesses involved in cryptocurrency transactions.

The regulator also advised local financial institutions from dealing in crypto assets or processing payments for cryptocurrency exchanges.

The CBN highlighted worries about money laundering, terrorism financing, cybercrime, and cryptocurrencies’ volatility as reasons for the restriction.

The Central Bank of Nigeria revised its stance on crypto assets in December 2023, requesting that banks overlook their February 2021 ban on crypto transactions.

The recent restriction on cryptocurrency websites is intended to slow currency speculation in the country, with Binance maintaining that its platform is not for currency pricing.

Bayo Onanuga, President Bola Tinubu’s Special Adviser on Information and Strategy, has claimed that Binance and other cryptocurrency platforms should be barred from functioning in Nigeria.

He stated that the bitcoin trading platform is facing restrictions in several jurisdictions, including the United States, Singapore, Canada, and the United Kingdom.

Binance responded by stating that it does not serve as a price discovery platform and that FX prices are set by complicated dynamics outside of the company’s control.

The trading company stated that it offers a market-driven peer-to-peer (P2P) platform that is not intended to be a proxy for currency pricing in Nigeria.

Platform users have complained about their inability to buy money.

The platforms blocked include:

– Binance

– Forextime

– OctaFX

– Crypto

– FXTM

– Coinbase

– Kraken

– Kucoin

– Bybit

There are also many other platforms used in the cryptocurrency transaction in Nigeria.

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