Nigeria Considers Blocking Crypto Websites Amid Binance Controversy

Reports suggest that the Nigerian government is taking steps to shut down cryptocurrency websites in the country. 

A source close to the matter informed Techpoint Africa that telecom companies might be directed to prevent people from accessing these sites. 

This move follows Binance, a crypto platform, halting peer-to-peer trading on its platform. The Central Bank of Nigeria (CBN) is possibly seeking to restrict Nigerians from using crypto websites to address the weakening of the naira.

While not confirmed, a source hinted that the apex bank might employ telcos to restrict access to these websites and apps in Nigeria. 

Binance recently suspended P2P activities, leading to user complaints about unavailable features. In response, Binance stated its commitment to a fair and secure platform, without specifying the reason for the suspension. It mentioned cooperation with local authorities for compliance.

One user, “Brother Bernard,” claimed collaboration between CBN, the National Security Agency (NSA), the Economic and Financial Crimes Commission (EFCC), and Binance to regulate USDT traders. Binance later clarified the suspension, citing automatic pauses during significant currency movements to prevent system abuse and ensure stability.

Critics view Binance’s action as cooperation with CBN to control trading, eroding trust in the platform. Last year, the Nigerian Securities and Exchange Commission (SEC) declared Binance Nigeria Limited illegal, warning users of its risks. Binance denied affiliation with the entity but SEC confirmed referring to the popular crypto exchange.

There’s speculation whether Binance’s recent moves relate to SEC’s declaration. Premium Times reported Nigeria’s plan to clamp down on Binance and other crypto platforms. 

An EFCC source criticised Binance for manipulating the dollar against the naira, damaging Nigeria’s economy. A CBN executive accused Binance of misleadingly devaluing the naira globally.

In response, Binance denied these allegations, emphasising its P2P marketplace role and disclaiming involvement in currency pricing.