On February 22 2024, it was reported in the media that Nigeria ordered telecommunications companies (telcos) and other internet service providers (ISPs) in the country to block access to virtual assets trading platforms.
Specifically, the Nigerian Communications Commission (NCC), the telecoms regulator, ordered telcos in the country to block access to the websites of Binance, Coinbase, Kraken, and a few others.
REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown
“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
At the time of writing, users in Nigeria either have no access to these websites or experience intermittent access. Apart from the order to block access to these virtual assets websites, two Binance executives have also been reportedly detained by the National Security Adviser (NSA). This detention was made by the Nigerian government on February 23 2024, after the meetings between the two Binance executives and the NSA with cybersecurity officers were deadlocked, following the executive’s failure to meet their demands.
According to reports, Nigeria has taken the actions above due to the continued depreciation of the Naira to record lows in recent weeks, believing that Binance and other related virtual assets platforms enabled, caused, or contributed to the issues bedeviling Nigeria’s foreign exchange market. At a press briefing after the 293rd Monetary Policy Committee meeting of February 27 2024, Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, disclosed that over 26 billion United States Dollars (USD) was channeled through Binance in the last one year.
Finally, statements credited to Bayo Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, claimed that Binance may be slammed 10 billion USD by the Nigerian government over alleged illicit activities in the country.
Binance has refuted the claim.
Mr. Onanuga eventually clarified that this was only a speculation on his part. Meanwhile, the House of Representatives’ Committee on Financial Crimes is also reportedly concluding investigations on Binance.
The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) was founded January 28 2021 as an intercommunity working group, comprising three major blockchain bodies/communities in Nigeria:
- Blockchain Nigeria User Group (BNUG)
- Cryptography Development Initiative of Nigeria (CDIN)
- Stakeholders in Blockchain Technology Association of Nigeria (SiBAN)
- Independent stakeholders who may not yet be affiliated with any of the three bodies/communities above
The press release addresses 6 key issues below:
- The order by the Nigerian government to telcos and ISPs in the country to block access to virtual assets websites, including Binance.com, Coinbase.com, Kraken.com, etc.
- The detention of two foreign Binance executives by the National Security Adviser (NSA)
- The over $26 billion USD disclosed by the CBN to have been channeled through Binance in the last one year
- The $10 billion USD reportedly imposed by the Nigerian government over Binance’s alleged illicit activities in the country
- The blockchain industry’s self-regulatory approach for consumer protection, investor safety, and national interest
- Availability of industry stakeholders for a dialogue with the CBN, SEC, NSA, and other relevant agencies in Nigeria
See full press release as shared with BitKE by the Chairman of the Blockchain Industry Coordinating Committee of Nigeria (BICCoN).
