Coinbase CEO Denies Allegations of Banning Nigerian Users, Affirms No Receipt of Government Directives

A recent report has claimed that the Nigerian Communications Commission (NCC), Nigeria’s telecom regulator, received instructions from the country’s central bank to block access to cryptocurrency websites, including popular platforms like Binance, Coinbase, and Kraken. This move allegedly came after Binance restricted peer-to-peer transactions involving the USDT/NGN pair, leading to a decline in the naira’s value. However, the CEO of Coinbase, Brian Armstrong, has denied these claims, stating that his exchange has not received any directive from the government and continues to operate normally.

In response to rumors circulating on social media about access restrictions imposed by the Nigerian government, Armstrong clarified on the platform X that Coinbase has not experienced any interruption and has not been contacted by Nigerian officials. He dismissed the allegations as inaccurate.

The controversy started when Nigerian citizens expressed their difficulty in accessing major cryptocurrency trading platforms on social media. Some users resorted to virtual private networks (VPNs) to bypass these restrictions and gain access to the exchanges. However, there has been no official confirmation from the government regarding the alleged limitations on Coinbase, Binance, and Kraken. Moreover, updates from Nigerian users on X have contradicted earlier claims, stating that these platforms are still accessible.

This crackdown on cryptocurrencies marks a significant departure from President Bola Tinubu’s previous market-friendly reforms aimed at attracting foreign investment to boost Nigeria’s economy. These reforms included efforts to regulate digital assets like bitcoin and tether, which were considered alternatives to traditional investments. The government had also lifted the ban on crypto transactions to strengthen anti-money laundering and counter-terrorism financing measures.

However, the focus has now shifted towards consolidating the exchange rate system, leading to the devaluation of the Nigerian currency twice in eight months. As a result, the naira has fallen to 1,851 against the dollar from less than 900 at the beginning of the year. Bayo Onanuga, an advisor to President Tinubu, criticized Binance for challenging the Central Bank’s authority in setting currency rates through its exchange. He argued that unless access to these exchanges is halted, the depreciation of the naira will continue.

Last year, the Nigerian Securities and Exchange Commission declared Binance’s local operation illegal due to its lack of registration or regulation by the authority. However, users continued to access Binance’s global website despite this.