The Nigerian currency, naira has lost almost 70% of its value in recent months due to allegations that Binance engaged in rate-fixing and currency speculation. Naira, which was exchanged at 460 to 1 US$ about a year ago has plummeted to 1,595 naira to 1 US$. The cost-of-living situation has gotten worse since the Naira’s collapse.
As per Nigerian Government Cryptocurrencies are not illegal but firms must register in order to operate. As per sources Binance had failed to do this. Nigeria’s central bank governor Olayemi Cardoso said Binance Nigeria had moved $26bn worth of untraceable funds.
Government’s special advisor Bayo Onanuga said the recent collapse was not the result of normal activity.
“Apart from the collapse of the naira, cryptocurrency is used for money-laundering and funding terror. The anonymity and privacy inherent in the cryptocurrency system are what draw individuals, particularly those with illicit intentions, towards its use.”
Nigerian Financial Intelligence Unit
“All of a sudden the exchange rate went through the roof and it was being caused by the people on Binance platform.” Earlier last week in Nigeria, two officials from Binance were taken into custody.
In an effort to stop the naira’s decline, Bitcoin companies Binance, Kraken, Forextime, OctaFX, Crypto, and FXTM have all been suspended in Nigeria in recent weeks. Binance is one of the most popular cryptocurrency platforms in the country.
Nigeria has shut down thousands of bureaux de change as part of yet another effort to reduce the trading of foreign exchange. The suspension of crypto platforms has caused unrest and annoyance in the country’s customers.
Nigeria has one of the largest cryptocurrency markets in the world in addition to being the largest economy in Africa.
