Sat, December 21

Nigeria Blocks Crypto Exchanges Amid Regulatory Uncertainty

Mohamed Faisal Published on Feb 22, 2024 at 3:25 PM

The country's vice president, Kashim Shettima, has said that Nigeria is prepared to surpass other developed nations economically and technologically. As part of Nigeria's plan for digital transformation and leadership in Africa, Shettima revealed this on Tuesday when he inaugurated the AI Expertise Blockchain and Technology Training and Outsourcing Initiative in Dutse, the capital of Jigawa State. In collaboration with the prominent tech firm Gluwa, the AI Expertise Blockchain and Technology Training and Outsourcing Initiative seeks to provide training in artificial intelligence, blockchain, and other cutting-edge technologies to 1,000 Nigerians every year. The Vice President urged Nigerian youngsters to embrace the initiative, stating that it is critical to the country's economic future, at the initiative's debut at the Yakubu Gowon NYSC Orientation Camp, Fanisau, Dutse. According to him: “We are not merely catching up with the rest of the world; we are poised to overtake them. This initiative offers its beneficiaries the chance to become part of a global workforce, driving innovation that will shape our future”. Together with outlining the initiative's wider goals, he said that the federal government is aiming to establish a nationwide network of tech centers that would sustain Nigeria's economic development for many years to come. The Vice President expressed gratitude for the collaboration with Gluwa, saying it is in line with President Tinubu's plan to transform Nigeria's digital technology space. He praised Gluwa for empowering Aella Microfinance Bank and enabling the flow of nearly N100 billion to two million Nigerians, while also acknowledging the substantial impact of the company. Jigawa State Governor Umar Namadi highlighted the significance of the initiative in his previous speech, calling it a unique chance that is right at the young people's doorstep. According to him, the new initiative prioritizes innovation and digital technologies and is in line with Jigawa State's 12-Point Agenda as well as the federal government's Renewed Hope Agenda. The governor went on to announce the creation of a new ICT & Digital Economy Agency, stating, that they are more committed than ever to re-establish Jigawa State as a significant ICT hub in Nigeria. Shettima had earlier announced the launch of the fourth iteration of the Expanded National Micro, Small, and Medium Enterprises (MSMEs) Clinic, revealing that President Bola Tinubu had issued an executive order directing the federal government to provide N150,000 grants to each state's business owners as part of its support for MSMEs nationwide. He said that the N150,000 that the president had allocated to each MSMEs was an outright grant that did not need to be repaid. One of the federal government's initiatives to facilitate business in Nigeria is the Expanded National MSME Clinics. These are a series of business forums that are arranged throughout the nation to offer MSMEs immediate solutions to problems they face. The first, second, and third editions of the clinics were introduced earlier this year in the states of Benue, Ogun, and Ekiti, respectively. The MSMEs sub-sector, according to Shettima, is the backbone of the country's economy and has been a top priority for the Tinubu administration. They not only account for over 45% of Nigeria's GDP and 96% of all businesses in the country, but they also provide a vital lifeline for 80% of the workforce. Malam Umar Namadi, the governor of Jigawa State, had earlier expressed gratitude to the federal government for granting the state's citizens dividends of democracy via the MSME Clinics and other similar initiatives dispersed around the region. Namadi called the initiative a unique chance for operators in the state's small business sector and encouraged both current and prospective entrepreneurs to use the services offered by the clinics.

The Nigerian government has ordered telecom companies to curb access to crypto exchanges.
The Central Bank of Nigeria lifted a ban on crypto transactions in December 2023.

The activities of prominent cryptocurrency exchanges, such as Binance, OctaFX, and Coinbase, have been disrupted by Nigeria. Particularly, this step follows the Central Bank of Nigeria’s recent decision to allow cryptocurrency transactions, indicating a very uncertain regulatory environment for digital assets in the nation.

Meanwhile, the Nigerian government has ordered telecom companies to curb access to these cryptocurrency platforms as tensions rise over worries about currency speculation. Binance, OctaFX, and Coinbase are among the companies that may be affected by the restriction, according to a report in the Nigerian business publication Business Day.

Regulatory Uncertainty

This move comes after a policy change on digital assets in December 2023, when the Central Bank of Nigeria lifted a ban on crypto transactions. Nevertheless, Binance has made it clear that its platform is not meant for currency pricing, and the new decision is an effort to reduce currency speculation activities in the nation.

Notably, Binance reaffirmed its dedication to a transparent and market-driven ecosystem in response to customer concerns over the platform’s inability to acquire dollars. In response to claims that currency speculation was flourishing on the platform, the company said that it had temporarily halted transactions in order to avoid any potential price suppression.

Nevertheless, Binance has reaffirmed its involvement with local authorities and regulators in order to be in line with the crypto legislation that is always changing. But with crypto exchanges in Nigeria still in the dark about their future, open communication between lawmakers, regulators, and industry leaders is more important than ever.

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Mohamed Faisal

A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.