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The Nigerian government is considering taking action against online platforms like Binance and other cryptocurrency companies amidst accusations of manipulating the foreign exchange market and facilitating illicit financial transfers, as reported by PREMIUM TIMES. This move comes as the Nigerian naira hits an unprecedented low of N1,815 to a dollar on the black market, with traders reportedly selling the currency for N1,830 per dollar.
In September 2023, the Securities and Exchange Commission (SEC) of Nigeria issued a disclaimer regarding Binance Nigeria Limited, declaring its operations in Nigeria illegal due to lack of registration and regulation by the Commission. Despite the warning, the company continued its operations, attracting significant business, especially from urban youth and individuals suspected of involvement in money laundering and speculation. Concerns over national security have arisen alongside allegations of economic sabotage, as criminal groups frequently exploit these platforms, sometimes for ransom payments.
According to law enforcement authorities cited by Premium Times, digital asset platforms are often utilized to manipulate FX values through fictitious transactions, a tactic described as a “sophisticated heist against the Nigerian economy.” An EFCC source investigating criminal complaints against digital asset platforms explained that manipulators create artificial demand to sell dollars at inflated prices, which are then used to mislead the market. This manipulated price is often adopted by Bureau de Change operators, who adjust their rates to match the benchmark set by Binance, even in the absence of genuine demand in that segment.
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