Lagos, Nigeria – February 29, 2024 – Several prominent cryptocurrency exchanges in Nigeria, including Binance, a global leader in the industry, have taken decisive action in response to heightened regulatory scrutiny from the Central Bank of Nigeria (CBN). These exchanges have announced the immediate suspension of all transactions involving the USDT and USDC stablecoins conducted with the Naira.
The decision follows a recent meeting of cryptocurrency founders, where concerns were raised about the regulatory environment and the potential for manipulation of exchange rates. At least two exchanges have already communicated this development to their Nigerian user base, signaling a significant shift in the country’s cryptocurrency landscape.
The CBN’s scrutiny comes at a time of increased volatility in Nigeria’s foreign exchange (FX) markets, prompting regulatory actions to stabilize the situation. CBN Governor Olayemi Cardoso emphasized the need for vigilance, citing that “$26 billion has passed through Binance Nigeria from sources and users we cannot identify.”
These developments have also led to unconfirmed reports of arrests within the cryptocurrency industry. While the details remain unclear, it is evident that regulators are taking a firm stance on ensuring compliance within the sector.
In response, cryptocurrency exchanges are proceeding with caution, with industry insiders expressing uncertainty about the future regulatory framework governing cryptocurrencies in Nigeria. The reported confiscation of passports of Binance executives, including an American and a British citizen, underscores the seriousness of the situation.
As the cryptocurrency industry navigates these challenging times, stakeholders are closely monitoring the developments and their potential impact on the broader cryptocurrency ecosystem in Nigeria.
