Nigeria has blocked access to prominent crypto-based entities like Coinbase, Binance, and Kraken to boost its failing fiat currency.
As per officials, the restrictions are part of a broader strategy to counter the influence of crypto exchanges in setting market prices.
Crypto advocates contest the government’s assertion that digital currencies foster illegal activities, arguing instead for their transformative potential.

As the digital financial landscape evolves, Nigeria’s recent actions to stabilize its currency have reverberated through the crypto community. The blockage of access to top crypto exchanges like Coinbase, Binance, and Kraken exchange epitomizes the government’s response to the naira’s declining value.

The crypto market faces unprecedented challenges, with the Central Bank of Nigeria (CBN) clamping down on illegal currency flows. Nigeria has enforced a stringent prohibition on major crypto exchanges to thwart currency speculation and bolster the naira.

The Nigerian Communications Commission (NCC) issued a directive targeting platforms known for their significant role in defining non-official rates for the naira exchange. This has resulted in sporadic access to these sites, rattling the nerves of the investment community and raising questions about the free flow of digital currency.

Nigeria Blocks Access To Top Crypto Exchanges As Naira Falls To Record Lows

Bayo Onanuga, Special Advisor to Nigeria’s President on Information and Strategy, confirmed the authenticity of local reports on these blocks. The restrictions are part of a broader strategy to counter the influence of crypto exchanges in setting market prices, as platforms like Binance often act as reference points for local foreign exchange rates.

The underlying tension between financial regulation and cryptocurrency’s decentralized ethos is evident in the actions taken by the Nigerian authorities. Onanuga expressed potent criticism against Binance, emphasizing the need to eliminate the platform’s sway over the naira’s valuation. He remarked that banning crypto in our country is necessary; otherwise, the bleeding of our currency will continue unabated.

Nigeria’s decision has sparked a debate on balancing regulating financial malpractice and nurturing innovation. With the national currency losing over 70% of its value since the CBN uplifted its dollar peg, the move to shut down these price-setting platforms raises questions about the future of crypto ventures and the nation’s fiscal health.

The suspension of key crypto exchanges has a broad ripple effect across Nigeria’s financial equilibrium and the global crypto industry. The Nigerian ban, the world’s fifth-largest Bitcoin market, could push investors towards alternative markets, with repercussions for financial services accessibility and crypto sector growth in Africa.