Nigeria Imposes Ban on StableCoin Sales on Crypto Exchanges as Crackdown Continues

Several crypto companies in Nigeria, including Binance, are discontinuing the purchase of USDT and USDC stablecoins using the Naira, a new report says.

“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 publication.

At least two cryptocurrency exchanges have informed their Nigerian customers about this new development, the report adds.

“We are suspending the buying and selling of USDT and USDC for Naira. This means you can’t buy or sell USDT or USDC with Naira,” said a notification sent by one exchange to customers.

This decision comes amid renewed scrutiny from the Central Bank of Nigeria (CBN), with recent service outages blamed on interference by government agencies.

🇳🇬REGULATION | #Binance Not Working for Users in #Nigeria Amid Allegations of Government Inteference

Among the speculations is that the apex bank could use telcos to block access to those websites and apps in Nigeria, while the Central Bank of Nigeria allegedly ordered Binance… pic.twitter.com/63BOMJzxFj

— BitKE (@BitcoinKE) February 22, 2024

Binance and other exchanges are facing increased regulatory scrutiny as authorities believe that crypto platforms facilitate speculation and potential manipulation of exchange rates. During the past week, users experienced difficulties accessing the websites of crypto exchanges such as Coinbase, Quidax, and Binance.

The heightened volatility in Nigeria’s foreign exchange (FX) markets has prompted various policy responses. Olayemi Cardoso, the Central Bank governor, alleged that ‘$26 billion has passed through Binance Nigeria from sources and users we cannot identify.’

A separate report said speculative trading on the Binance peer-to-peer service played a significant role in the ‘113.1% devaluation of the Naira against USDT’ since February 2023.

The report, by a coalition calling itself the Digital Currency Coalition, though unverified, is revealing as to why Binance and other crypto firms may be facing another onslaught, since the lifting of the 2021 crypto ban.

Company officials are not resorting to unique measures in an increasingly hostile environment.

“The office asked us not to wear Binance t-shirts and caps and to not attend Binance-related events for now,” a Binance employee who asked not to be named told a local news outlet.