In a move that has sparked intense debates within Nigeria and beyond, an adviser to Nigeria’s president has ignited discussions about the potential ban of leading cryptocurrency trading platforms, including Binance and KuCoin, amidst concerns over the country’s currency stability.

Bayo Onanuga, serving as President Bola Tinubu’s adviser on Information and Strategy, took to social media to voice allegations against these platforms, accusing them of manipulating the Nigerian naira and exacerbating its decline in the forex market. This call for action comes at a time when the Nigerian government is reportedly considering regulatory measures to address the issue.

Onanuga took to social media to voice his concerns, specifically accusing users trading on the Binance platform of being unpatriotic. He claimed that these platforms play a role in the ongoing decline of the Nigerian naira in the forex market. The presidential adviser’s comments come at a time when there are already rumors circulating about the government considering a ban on cryptocurrency trading.

In a post titled “The Naira-Dollar Manipulators,” Onanuga called upon the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to swiftly intervene and halt the operations of cryptocurrency exchanges in the country. He stated, “Crypto should be banned in our country, or else this bleeding of our currency will continue unabated.”

The adviser specifically targeted Binance, a leading cryptocurrency exchange currently facing regulatory scrutiny in several countries. Onanuga criticized Binance for allegedly setting exchange rates for Nigeria and questioned its authority to determine the value of the Naira on its crypto exchange platform. He highlighted that Binance faces access limitations in various jurisdictions, including the U.S., Singapore, Canada, and the U.K.

Responding to the allegations, Binance issued a statement on February 22, distancing itself from the forex crisis in Nigeria. The exchange emphasized that its platform is “market-driven” and clarified that it is not intended to serve as a proxy for currency pricing in Nigeria.

In a strongly worded post titled “The Naira-Dollar Manipulators,” Onanuga raised concerns about the impact of cryptocurrency trading on the nation’s economy, labeling Nigerians who engage in such trading as unpatriotic. He called upon both the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to swiftly intervene and halt the operations of cryptocurrency exchanges in the country.

“The EFCC and the CBN should move against these platforms trying to manipulate our national currency to Ground Zero. Crypto should be banned in our country, or else this bleeding of our currency will continue unabated,” Onanuga asserted.

Central to Onanuga’s argument is the assertion that platforms like Binance wield significant influence over the value of the Naira, effectively sidelining the regulatory authority of the CBN. He highlighted Binance’s regulatory challenges in various jurisdictions, including the United States, Singapore, Canada, and the United Kingdom, as evidence of its contentious role in determining currency exchange rates.

Responding to the allegations, Binance issued a statement distancing itself from Nigeria’s forex crisis, emphasizing that its platform operates on market-driven principles and is not designed to dictate currency pricing in Nigeria or any other country.

Meanwhile, recent actions taken by Binance, such as setting a limit on the selling price of USDT tokens on its peer-to-peer (P2P) platform, have fueled speculation within the local crypto community. The exchange’s decision to cap USDT sales at 1,802 Nigerian naira per USDT prompted questions about its motives and raised concerns about potential market manipulation.

Nigeria’s crypto landscape has undergone significant shifts in recent years, with the country emerging as the largest P2P market globally following the Central Bank of Nigeria’s ban on institutional crypto transactions in 2021. However, a subsequent circular issued to banks in December 2023 lifted the ban, allowing Nigerian banks to facilitate cryptocurrency transactions once again.

The prospect of banning cryptocurrency trading platforms in Nigeria has far-reaching implications, not only for the country’s burgeoning crypto market but also for its broader economic landscape. As stakeholders grapple with the complexities of regulatory oversight and financial stability, the outcome of these deliberations will shape Nigeria’s digital economy for years to come.