Published May 11, 20242 min read

Cryptocurrencies Under Ban: Reaction of Users and Investors in Nigeria

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artwork image for: The Battle for Stability: Nigerian Authorities Combat Devaluation Through Ban on Cryptocurrency Operations

In today's news article, Coinmooner wants to share some vital information with its readers about new decisions made by Nigerian authorities regarding cryptocurrency. The proposal from the Nigerian Securities and Exchange Commission to exclude the local currency from crypto exchanges aims to prevent manipulation and limit investment opportunities, which are blamed for the decline in the national currency's value. Nigeria ranks second globally in the number of cryptocurrency users using it for everyday financial transactions.

Nigerian authorities have been discussing these decisive measures for several months amidst a crisis related to the national currency. Authorities believe banning peer-to-peer transactions using the naira will help stop currency manipulation and address its devaluation. They view this as one of the most effective methods to counteract the devaluation of the national currency, which 2024 ranked first among the 14 worst world currencies against the US dollar.

Such actions have sparked questions and discussions within Nigeria's financial community and beyond. They reflect the challenge of balancing state interests and investor concerns in the global financial environment and the goal of ensuring stability in the national currency amid dynamically changing economic conditions. Many online users are convinced this move will significantly restrict Nigerian crypto investors and impact various Web3 projects involving investors from this region.


Nigerian Crisis: How Cryptocurrency Ban Affects Global Financial Markets?

Without any doubt, actions by Nigerian authorities have had a severe impact on the largest cryptocurrency exchange, Binance. One example is the case of their employee, who is still under investigation by African authorities. You can learn more about this in our news article "Crypto Chaos: Nigeria's Central Bank Chief Sounds Alarm on Binance Influx". In March, this international cryptocurrency giant had to halt operations with the Nigerian currency, the naira.

Furthermore, following Binance's lead, another major player in the cryptocurrency market, OKX, decided on May 3 to exclude the Nigerian currency from its peer-to-peer platform. While the company didn't explicitly mention pressure from the country's regulatory bodies, their statement about "changes in local market requirements" hints at a cautious approach amidst increased scrutiny in Nigeria.

As evident, cryptocurrency is not just a passing trend, but a resilient force actively penetrating various countries. Some governments embrace it, using it to stimulate their economies, while others see it as a threat to stability. Nevertheless, the advent of Web3 signifies global technological changes impacting every corner of the planet, reinforcing the strength and adaptability of the cryptocurrency market.

Coinmooner will closely monitor events related to Nigerian authorities' decisions regarding cryptocurrency and strive to inform our readers of any new developments as soon as possible. CoinMooner will also emphasize the importance of securing one's finances using advanced protection methods to avoid potential losses.

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