According to reports, the Nigerian government is considering banning Binance and other cryptocurrency companies to stop illegal financial transfers and manipulation of the forex market.
According to Nigerian officials cited by Premium Times Nigeria, cryptocurrency exchange Binance and other digital asset trading platforms may be prohibited in Nigeria as the local government considers measures to stop manipulation of the foreign exchange market.
According to the report, the move was made in reaction to rising worries that criminals were using cryptocurrency trading platforms to threaten the value of Nigeria’s fiat currency, the naira.
Authorities have voiced concerns about national security and the economic effects, citing tales of criminal organizations using cryptocurrency platforms to pay ransoms.
The development follows recent measures taken by Binance, which imposed a limit on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria.
In a blog announcement to Nigerian users on Feb. 20, Binance emphasized its commitment to collaboration with local authorities, saying it is “working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance.”
Following their collaboration to address issues of economic stability, the Central Bank of Nigeria (CBN) and the Office of the National Security Adviser announced Binance’s decision.
In response to increased volatility in the local markets, officials said the joint endeavor intends to improve the regulation of local trading platforms.
