Nigeria’s Crypto Community Criticizes Government Stance on Exchanges

The crypto community in Nigeria has strongly criticized the government's recent anti-industry stance, despite having previously lifted the ban on crypto trading.

Nigeria’s crypto community criticizes government’s stance on exchanges.

Image Source: David Pokima

Last updated: February 23, 2024 10:49 EST | 2 min read

Image Source: Miximages

Nigeria’s crypto community has slammed the recent anti-industry stance of a government that previously lifted the ban on crypto trading. However, it seems like the government has some “misplaced priorities” as the country’s digital asset users and policy watchers firmly believe that centralized cryptocurrency exchanges are not to blame for the falling currency.

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Falling Naira: Not Caused by Cryptocurrencies

For most Nigerian traders, cryptocurrencies like Bitcoin and centralized exchanges are not the reason for the falling valuation of the naira. Instead, they blame government corruption and policies adopted by the former administration. There are reports that the former government irresponsibly printed an additional 50 to 60 billion naira distributed among states in 2021. 🤦‍♂️

X user and government critic Kelvin Odanz holds the ruling party’s monetary policies responsible, saying they are simply “chasing shadows” with Binance. 😒

“Buhari not only printed trillions for reckless spending, he also borrowed millions and millions from foreign lenders. Tell me why Naira won’t experience a meltdown?”

Similarly, Toyin Omotoso explained that the Nigerian government is chasing the wrong things with reports on the hard cap on USDT sales on Binance. He predicts a downtrend for the naira if the issues are not fixed. 📉

“Naija government is busy using force to fight Naira devaluation. Why is EFCC arresting BDC merchants up and down, forcing Binance to put a hard cap on USDT sales, etc as if these will stop anything. Doing all these instead of doing the things that are dragging down to Naira to hell.”

While some users criticized the cap imposed on Binance, calling for a reversal to allow a free market, pro-government accounts backed the moves with hopes of strengthening the naira. 😄

Nigeria’s Harsh Crypto Strategy

This week, several government officials have blamed the naira’s woes on the cryptocurrency market, claiming that centralized platforms are used by market manipulators. As a result, they have taken action, including arresting some currency traders who didn’t have licenses. There are also reports stating that the government is seeking to ban exchanges by asking telecom providers to limit access to their websites. The potential ban on centralized exchanges has caused fear among users, as they worry about the impact on their assets and ease of trading tokens. 😱

Furthermore, Bayo Onanuga, the Presidential adviser on Information and Strategy, alleged that the activities of crypto exchanges are sabotaging government efforts. He called for the Economic and Financial Crime Commission (EFCC) and the Central Bank of Nigeria to take action against these platforms. 🚫🏦

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Q&A Content

Q: What is the Nigerian crypto community criticizing the government for?

A: The Nigerian crypto community is criticizing the government’s recent anti-industry stance, particularly its blame on centralized cryptocurrency exchanges for the falling valuation of the naira. The crypto community believes that government corruption and irresponsible monetary policies are the real causes.

Q: What are the reasons behind the falling valuation of the naira according to Nigerian traders?

A: Nigerian traders blame government corruption and policies adopted by the former administration, such as the irresponsible printing of additional currency and borrowing from foreign lenders.

Q: What actions has the Nigerian government taken against the cryptocurrency market?

A: The government has arrested some currency traders without licenses and has considered banning centralized exchanges by asking telecom providers to restrict access to these platforms.

Future Outlook and Investment Recommendations

Based on the current situation in Nigeria, it is crucial for the government to address the root causes of the falling valuation of the naira, such as corruption and irresponsible monetary policies. Instead of blaming the crypto industry, the government should focus on implementing effective economic and financial strategies that will stabilize the currency.

Investors should closely monitor the developments in Nigeria and assess the impact of government actions on the crypto market. It is important to consider the potential risks associated with regulatory measures and make informed investment decisions.

References:

1. Comedy Icon Larry David says “I’m an Idiot” for Taking Part in FTX Super Bowl Ad
2. Miximages: Nigeria’s Crypto Community Criticizes Government Stance on Exchanges
3. Twitter: Sani Yusuf
4. Twitter: Theo Abu Agada
5. Twitter: Kelvin Odanz
6. Twitter: Toyin Omotoso
7. Twitter: Adedotun
8. Blocking.net: Robert F. Kennedy Jr. Pledges to End US Efforts to Move Toward CBDC

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