FG Blocks Online Platforms of Binance, Coinbase, Octafx, Kraken, Other Crypto Firms

By Medinat - Editor
FG Blocks Online Platforms of Binance, Coinbase, Octafx, Kraken, Other Crypto Firms

In response to what it perceives as ongoing manipulation of the forex market and illicit financial activities, the Nigerian government has taken decisive action by blocking several online platforms, including Binance and Coinbase.

Sources within major telecommunication companies confirmed that the Nigerian Communications Commission (NCC) issued directives to block access to these platforms, with implementation already underway.

Apart from Binance and Coinbase, other affected platforms include Forextime, OctaFX, Crypto, FXTM, and Kraken, among others.

The decision to block these platforms follows government concerns about currency speculators and money launderers exploiting them for criminal activities, which authorities believe have significantly contributed to the devaluation of the naira.

Despite warnings from regulatory agencies, such as the Securities and Exchange Commission (SEC), regarding the legality of their operations, platforms like Binance continued to operate, attracting a considerable user base, particularly among urban youths and suspected speculators.

The government’s action is also motivated by national security concerns, as these platforms are reportedly utilized by criminal groups, including those involved in ransom payments.

In response to the government’s move, Binance stated its commitment to removing users engaged in manipulative behavior from its platform and cooperating with local authorities, lawmakers, and regulators to ensure compliance.

The Nigerian government, meanwhile, announced plans to raise $10 billion to enhance liquidity in the foreign exchange market, aiming to optimize the management of federal assets and investments to boost economic growth.

The naira’s value reached an all-time low of N1,900 per dollar on the parallel market, driven by speculation and uncertainties surrounding supply constraints. However, it slightly appreciated to N1,551.24 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In tandem with the blocking of online platforms, the Office of the National Security Adviser directed law enforcement agencies to take decisive measures against individuals engaged in forex market speculation, acknowledging the Central Bank of Nigeria’s efforts to stabilize the market but highlighting the challenges posed by speculators undermining these initiatives.

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