Crypto users in Nigeria encountered a brief disruption in accessing popular exchanges Binance, Kraken, and Coinbase recently. The temporary outage affected their ability to trade cryptocurrencies and withdraw funds. The exact cause of the issue remains unknown, but it highlights the importance of reliable infrastructure and the need for robust security measures in the crypto industry. The incident serves as a reminder of the challenges associated with decentralized platforms and the importance of maintaining uninterrupted access to crypto exchanges for users worldwide.
According to the Financial Times, some cryptocurrency exchanges in Nigeria experienced customer accessibility problems, which gave rise to rumours that cryptocurrency websites were being restricted.
Local media said on Wednesday that the nation's top bank had sent the Nigerian Communications Commission (NCC), the country's telecom regulator, instructions to halt access to cryptocurrency websites like Binance, Coinbase, and Kraken. According to a different story, this development happened the day after Binance placed restrictions on peer-to-peer trades of the USDT/NGN pair, along with the naira's decline to all-time lows.
After the central bank forbade local financial institutions from supporting direct trades three years prior, cryptocurrency exchange platforms—Binance in particular—became well-known for their peer-to-peer features. Additionally, despite the fact that the central bank recently relaxed bank regulations and contemplated licencing cryptocurrency businesses for legitimate transactions, Binance had to impose trade restrictions on Tuesday due to the naira's sharp decline to all-time lows (roughly $1 to ~N1,900), which the government partially blamed on cryptocurrency-trading platforms.
For a large number of Nigerian cryptocurrency users, Binance and other platforms act as a hedge against the naira's recurrent depreciation. However, the recent initiative by the Nigerian government to impose restrictions on access to these platforms is perceived as an attempt to reclaim authority over the naira's value.
Unofficial naira exchange rates have been heavily influenced by these exchanges; sites such as Binance frequently act as standards for regional foreign exchange prices. The government wants to take control of the naira's value and maintain its place in the financial system, so it's restricting access to these platforms. However, the consequences of the government's recent moves will take time to materialise.
A presidential spokeswoman reportedly confirmed to Bloomberg that Nigeria has issued an order directing internet service providers and telcos to ban access to bitcoin trading sites. Although Binance did not state clearly that it was impacted by this decision, it did reassure users about the security of their money and the accessibility of their accounts.
"We are aware that certain consumers are having trouble accessing other platforms in the sector as well as binance.com. The app is still accessible, but only users trying to visit the website are affected, according to Binance.
It appears that the order to restrict access has been temporarily halted, as Binance and other cryptocurrency trading platforms, like Kraken and Coinbase, are currently accessible. Several Nigerian users of Binance had reported having trouble accessing the site in the early hours of Thursday.
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