Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-02-22 03:57:16
The Nigerian Communications Commission (NCC) recently directed telecommunications firms to block access to the websites of cryptocurrency firms, in an effort to curb the depreciation of the naira. A senior executive from a telecommunications company confirmed that the directive had been implemented, affecting firms such as Binance, OctaFX, and Coinbase. This move comes after the Central Bank of Nigeria (CBN) issued a guideline to govern the activities of digital asset operators.
In December 2023, the CBN reversed its ban on crypto transactions and instructed banks to disregard its previous directive from February 2021. One of the affected firms, Binance, clarified that its platform is not intended for currency pricing. Despite users expressing frustration over their inability to purchase dollars, Binance emphasized their commitment to a market-driven, fraud-free, and manipulation-free platform for users. The company also stated that it was collaborating with local authorities, lawmakers, and regulators to ensure compliance with regulations.
Binance further confirmed that it had temporarily paused transactions to protect users from price suppression. Addressing rumors about currency speculation on its platform, the company explained that foreign exchange rates are influenced by a myriad of complex factors that it cannot control. They also reiterated their commitment to engaging with regulators, policymakers, and other stakeholders to facilitate an open and transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets.
In September 2023, the Securities and Exchange Commission (SEC) of Nigeria issued a disclaimer on Binance Nigeria Limited, stating that the platform was operating illegally in the country as it was neither registered nor regulated by the Commission.
Despite these developments, Binance emphasized that foreign exchange rates are influenced by complex factors beyond its control. The company reiterated its dedication to collaborating with regulators, policymakers, and other key stakeholders to foster an open and transparent dialogue about navigating the evolving landscape of cryptocurrency and financial markets.
It is important to recognize that the decision of the telecommunications firms to block access to cryptocurrency websites is influenced by a combination of complex factors, including the directive from the NCC and the efforts to stabilize the naira. Furthermore, the changing regulations and guidelines from the CBN and SEC have contributed to the evolving landscape of cryptocurrency operations in Nigeria.
The evolving landscape of cryptocurrency operations in Nigeria is influenced by changing regulations, guidelines, and external factors that are beyond the control of cryptocurrency firms such as Binance. The collaboration between cryptocurrency firms and authorities in Nigeria is an important step in ensuring compliance with regulations and fostering an open and transparent dialogue about the management of cryptocurrency and financial markets.
