NCC Orders MTN, Airtel, Glo, Others to Block Binance Amid Allegation of FX Manipulation
- The Nigerian Communications Commission has directed MTN, Glo and other telecommunication networks to block Binance
- The new directive came amid a report that the government is contemplating blocking Binance and similar companies
- This is as the naira continues to fall, reaching a new low on Wednesday, February 21, 2024
- Olumide Adesina, a financial analyst, said the crypto ban will only alienate the populace further
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Nigerian Communications Commission (NCC) has ordered telecom companies to restrict access to Binance and other cryptocurrency companies' websites.
Source: Getty Images
The telcos received a directive from the commission on Wednesday, February 21, a reputable source in the telecom sector revealed to BusinessDay.
Earlier, Legit.ng reported that the Nigerian government is contemplating blocking the online platforms of Binance and other cryptocurrency companies to prevent alleged manipulation of the foreign exchange market and illicit financial transfers.
The development came on the back of a report that the naira reached an all-time low on the black market due to the recent unprecedented depreciation of the Nigerian currency.
On Tuesday, traders in the black market told Legit.ng that they sold the naira for N1,830 per dollar.
Some industry participants believes that the continuous fall of the naira may be linked with some manipulative operations of digital platforms like Binance and other digital assets platforms.
Premium Times reported that digital asset platforms are frequently used to manipulate FX values by creating fictitious transactions that either drive up or down values, according to law enforcement authorities.
Weighing on the development, Olumide Adesina, a financial analyst, said the crypto ban will only alienate the populace further.
According to him, the core issues are fixing challenges affecting inflows, such as oil theft, high moderation in FDIs plus FPIs, and fiscal indiscipline.
He said:
"Labeling Nigerian banks or Binance negatively will do little to solve the issue. The fiscal side needs to make real adjustments, and time is not their ally"
Binance issues warning to Nigerian users
Earlier Legit.ng reported that the Cryptocurrency exchange, Binance, has stated that users behaving in a manipulative way would be removed from the platform.
The company also said it is working hand in hand with local authorities, lawmakers, and regulators to ensure it acts on non-compliance.
The platform stressed its shared goal of protecting users while promoting innovations.
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Source: Legit.ng
Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng
Olumide Adesina (Cryptocurrency expert and senior analyst at Quantum Economics) Olumide Adesina is a French-born financial market writer and trader who tracks, analyses and reports changes in financial markets. Olumide has over 15 years of working experience in investment trading. He reports news about the international and Nigerian financial markets. His byline has appeared across news platforms like Yahoo Finance, Yahoo New Zealand, CoinDesk, Nasdaq, TheCable, and Africa Report, among others.
