CBN is allegedly planning to shut down all crypto websites in Nigeria. A source that is very close to the matter revealed to Techpoint Africa that telecommunication companies could just be instructed to not allow people to visit the sites. This new development is coming after Binance, a crypto platform, reportedly shut down P2P trading on its platform.
CBN Planning To Shut Down Crypto Websites In Nigeria
The Central Bank of Nigeria (CBN) is reportedly considering measures to restrict Nigerians from accessing crypto websites as part of its efforts to address the depreciation of the naira.
Although this information has not been officially confirmed, a source familiar with the matter suggested that the CBN might collaborate with telecommunications companies to block access to such websites and applications within Nigeria.
This development follows the recent suspension of peer-to-peer (P2P) activities by the crypto platform Binance on February 20, 2024. Users of the platform expressed concerns on X about the absence of USDT buy ads on the platform.
Binance’s Response to the New Development
In response, Binance issued a statement emphasizing its commitment to providing a secure and compliant platform but did not specify the reason for suspending crypto activities. The company mentioned ongoing cooperation with local authorities, lawmakers, and regulators to ensure compliance.
Notably, an X user named Brother Bernard claimed that the CBN, National Security Agency (NSA), and the Economic and Financial Crimes Commission (EFCC) collaborated with Binance to regulate USDT traders.
Binance Clarified That Its P2P Trading Was Suspended Automatically By Its System
In a subsequent statement on February 21, 2024, Binance clarified that its P2P trading was suspended automatically by its system due to significant currency movement. This pause mechanism aims to prevent system abuse, and adjustments were made to address the issue.
However, many users perceive Binance’s actions as cooperation with the CBN to control trading activities, leading to a loss of trust in the platform. Several posts on X suggest alternatives to Binance due to this lack of trust.
Nigerian Securities and Exchange Commission (SEC) Declared Binance Nigeria Limited Illegal Last Year
It’s worth noting that last year, the Nigerian Securities and Exchange Commission (SEC) declared Binance Nigeria Limited as illegal in the country, warning users about associated risks. Binance, however, denied any affiliation with the entity named Binance Nigeria Limited. Despite this, the SEC confirmed that it referred to the popular crypto exchange Binance. The connection between this regulatory action and Binance’s recent suspension remains unclear.
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