Coinbase, a prominent United States-based crypto exchange, has discredited allegations that the Nigerian government ordered it to prevent its citizens from using its crypto trading services.
The denial came directly from Coinbase CEO Brian Armstrong, who addressed the issue via a post on X. Armstrong clarified that Coinbase services are still operational in Nigeria, with no reported outages.
Armstrong emphasized that Coinbase has not been approached or contacted by Nigerian officials regarding any such directives.
As far as I know, this is WRT Coinbase inaccurate.
Coinbase products continue to work (without interruption)
We have not received any contact or communication from officials in Nigeria.– Brian Armstrong (@brian_armstrong) February 23, 2024
Controversy surrounding cryptocurrency restrictions in Nigeria
The controversy arose after crypto-firms.html” target=”_blank” rel=”noopener nofollow”>reports that circulated earlier this week alleging that the Nigerian government had ordered telecommunications companies to block access to several crypto trading platforms, including Coinbase, Binance, and Kraken.
EXCLUSIVE: Forex Crisis: Nigeria Plans to Clamp Down on Binance and Other crypto Firmshttps://t.co/4eE0VWBgRq pic.twitter.com/ZNGAhdSjFw
– Premium Times (@PremiumTimesng) February 21, 2024
The alleged motive behind these restrictions was to curb suspected manipulation of the foreign exchange market, particularly with regards to the spot rate of the Nigerian naira on platforms such as Binance, which reportedly stood at approximately 1,850 naira to the dollar before of the alleged restrictions.
Despite the claims, many Nigerians have continued to access their accounts on platforms such as Binance, indicating a lack of concrete evidence to support the reported government directives.
Binance is still working perfectly in Nigeria. So why do people say no? pic.twitter.com/jmj5Pw212B
– Cryptoengine (@cryptengine) February 23, 2024
The lack of official confirmation regarding access restrictions to Coinbase, Binance and Kraken adds more ambiguity to the situation.
Nigeria, recognized for having one of the largest cryptocurrency populations in the world, has witnessed significant transaction volumes in the crypto space, reaching $56.7 billion between July 2022 and June 2023, according to data from the firm. Chainalysis blockchain analysis.
Nigeria's dual approach to cryptocurrencies and blockchain
While Nigeria's regulatory stance towards cryptocurrencies is quite unfavorable, there appears to be considerable interest in blockchain technology within the nation.
In a recent interview with Sunday PUNCH, Oluseyi Akindeinde, CEO of Hyperspace Technologies, emphasized the potential of blockchain to improve security within the pharmaceutical sector.
Akindeinde advocated using blockchain to serialize pharmaceutical products and integrate strong security features to combat the proliferation of counterfeit medicines.
Their proposal involves incorporating encrypted non-fungible token (nft) tags into pharmaceutical items, providing them with unique identities and greater security measures.
By encrypting these NFTs, authorized persons can access ownership details and other essential information, ensuring the integrity of the digital assets stored on the blockchain.
Featured image from Unsplash, chart from TradingView