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Nigerian government forces out world’s largest crypto broker; blames it for depreciation in national currency – Bright Simons

The Vice President of IMANI in charge of research at the IMANI Centre for Policy and Education, Bright Simons, has disclosed the Nigerian government’s action of forcing out the world’s largest crypto broker, Binance, due to the country’s depreciation of the national currency.

According to the Nigerian government, Binance manipulated foreign exchange rates through currency speculation and rate-fixing, which have seen the naira lose nearly 70% of its value in recent months.

Two Binance executives were arrested in Nigeria earlier in the week.

The Nigerian government says it has demanded almost $10bn (£8bn) in compensation from the cryptocurrency firm, Binance.

Nigeria is Africa’s biggest economy and also one of the world’s biggest cryptocurrency markets.

On Tuesday, Nigeria’s central bank governor Olayemi Cardoso said Binance Nigeria had moved $26bn worth of untraceable funds.

Binance is understood to be one of the most popular cryptocurrency platforms in the country.

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To the frustration of Nigerian users, Binance and several other cryptocurrency firms have been suspended in the country in recent weeks including Coinbase, Kraken, Forextime, OctaFX, Crypto and FXTM in an attempt to halt the slide of the naira.

As well as the collapse of the naira, the government also says cryptocurrency is used for money-laundering and funding terror.

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The “anonymity and privacy inherent in the cryptocurrency system are what draw individuals, particularly those with illicit intentions, towards its use,” said a recent report by the Nigerian Financial Intelligence Unit.

Central bank governor Mr Cardoso said on Tuesday that “illicit flows” had been spotted on some cryptocurrency platforms in Nigeria. No specific firms were named as culprits.

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In another measure intended to curb foreign-currency trading, Nigeria has closed thousands of bureaux de change.

Nigeria’s central bank has been under pressure to stabilize the national currency, the naira, which currently exchanges at 1,595 naira to US$1, compared to about 460 a year ago.

The collapse of the naira has worsened the cost-of-living crisis. High food and commodity prices – including fuel and transport – have led to protests in recent weeks.

See post by Bright Simons below:

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