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Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times - Business - Nairaland

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FOREX Crisis: FG Slams $10 Billion Fine On Binance / FG Blocks Binance, Coinbase, Octafx, Kraken, Other Crypto Firms - Premium Times / Nigeria To Clampdown On Loan Apps For Illegal Debt Recovery (2) (3) (4)

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Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by fergie001: 8:23am On Feb 21
The Nigerian government is considering blocking the online platforms of Binance and other crypto firms to avert what it considers continuous manipulation of the forex market and illicit movement of funds, officials with knowledge of the policy option have told PREMIUM TIMES.

The recent unprecedented weakening of the Nigerian currency has seen the naira falling to all-time low of N1,800 to a dollar in the parallel market.

Presidency and regulatory sources say the government decided to move against Binance and other crypto firms following reports that currency speculators and money launderers were using them to execute criminal activities. Authorities believe the ‘criminal activities’ going on on platforms are contributing significantly to the weakening of the naira.

Binance, a digital assets platform, serves as a window for peer to peer transaction allowing users to advertise interest to sell or buy currencies of their choice.

In September 2023, Nigeria’s Securities and Exchange Commission (SEC) placed a disclaimer on Binance Nigeria Limited, saying the platform was “neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal”.

Despite the warning by the regulatory agency, the firm continued its operation, attracting huge patronage especially among urban youths and suspected speculators and money launderers.

Aside suspicions of economic sabotage, officials also speak of national security concerns as the platforms are often patronised by other criminal groups including for payment of ransom.

Law enforcement sources say the digital asset platforms are also routinely deployed for manipulation of forex values through fake deals that serve to prop up values or cause a fall.

A source at the Economic and Financial Crimes Commission (EFCC) involved in probing criminal complaint against digital asset platforms, who was however not authorised to speak to the press, described the process as a “sophisticated heist against the Nigerian economy”.

According to her, by allowing simultaneous opening of buy and sell windows for a single user, manipulators often fake interest to sell dollars which they then buy at a speculated rate to themselves through the buy window.

“This therefore gives the dollar a fake value against the naira which then sets a frenzy and mislead the market. This fake price is then often quoted by BDCs who raise their prices to meet the Binance benchmark even without any corresponding demand in that segment," she said.

A senior executive at the Central Bank of Nigeria (CBN) described as “troubling” the bearish downward trade of the naira against the dollar in the last 10 days, attributing it to artificial devaluation caused by the speculative sites.

“Through manipulative rent seeking, Binance’s global reach results in higher USD to NGN exchange rates often being used as a benchmark for currency trading, misleadingly devaluing the Naira in global markets.”

But he added that trading on the platform is encouraged by activities of money-launderers and terrorist financiers “who have no qualms with the arbitrage”.

“We started noticing this sharp trend from February 9, and since then it has caused significant devaluation of the naira against the USD. This is simply criminal,” he said.

Binance has had similar accusations of currency manipulation and unethical conduct leading to sanctions in many countries and an ongoing lawsuit in the United States.

If the government decides to invoke a ban on the digital asset trading site it would be treading the path of countries like Malaysia, France and Malta, among others.

Contacted on Thursday night on the planned clampdown on Binance and other crypto firms, Mr Mijinyawa (The Head of Strategic Communication, Office of the National Security Adviser), said he was at an “important meeting”. He did not answer or return subsequent calls made to him.

Binance could not be reached Wednesday morning. Multiple calls to a customer service number listed for it rang out unanswered.

SOURCE

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Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Nbote(m): 8:29am On Feb 21
At this point, it is very very very very clear that these people are very very very very clueless. This is what you get when you bring in relics as leaders. Is Nigeria the only country using Binance? How can anyone who isn't a slowpoke claim Binance is a sophisticated heist against the economy? Your borrowings, your cost of governance, your unapologetic pilfering of public funds aren't all against the economy but na Binance that's has no physical office in the country, used by hundreds of millions worldwide in hundreds of countries that is a heist against the economy?? How is this any different from what Buharia did by banning crypto??
Zxcvbnmghtr:


But you haven't told us what the solution is, you have only been making noise. Empty vessel makes the loudest of noise. grin

I didn't campaign for the job, I am not being paid for the job neither am I qualified for the job but arleast the little knowledge I have is enough to know that this is foolishness. I don't expect an imbe.cile to know that


Britishpea:


There are so many criminals in Nigeria hiding under some canopies. Govt can’t succeed if they don’t have the support of the citizens. People criticize them over everything without lauding any of their policies. The critics mostly are sponsored by the ones eating from the rots. And influencers have their ways of piercing through the minds of the weaklings.

Binance is used for money laundering fyi. Crypto firms mostly make their money from it. So BLord made so much money by selling and buying bitcoins ? Dey play!

Why did USA ban liberty reserve and e-gold back then?


Banks are used for money laundering. BDCs are used for money laundering. Gold traders and miners are used for money laundering. They've Even being using petrol stations and real estate to launder money and these days they use FCCMG businesses to launder money. Do almost all politicians and public office holders not have dollar accounts in tens and hundreds of millions? The likes of BLord, Hushpuppi have always been fraudsters but didn't need Binance to be fraudsters

Winning123:



Can you see how useless and clueless you and all the people that likes your comments. So France, Malaysia and other countries that ban it are clueless.

Only imbe.ciles are those with mucus in their brains will reason like you. South Africa's economy is suffering a heist, Australia, Japan, Switzerland, Taiwan who are all miles ahead aren't suffering economic heist. But it is Nigeria who's politicians practically carry Ghana must go bags of cash around, stash it in their houses that is suffering from economic heist? Fraudsters have been using banks to launder money and receive dollars payment time and time again but suddenly Binance is the problem?

175 Likes 16 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by derecho(m): 8:42am On Feb 21
Tinubu is not only illegitimate BUT clueless

101 Likes 7 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Akwamkpuruamu: 8:45am On Feb 21
Senseless fights.

Dem close Abokifx yet Dollar no fall. Dem shoot BDCs yet e nọ work. Now na to close Binance and Flutter wave...

Agbero economic style... very senseless

121 Likes 6 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by inoki247: 8:45am On Feb 21
I sha see say no merchant to for buying since yesterday and the selling rate are the same....

4 Likes 2 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by CelestineNelson: 8:45am On Feb 21
Let the Crypto world hear me...your illusionary investment is about to be touched ...

8 Likes 4 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Cassandraloius: 8:46am On Feb 21
Senseless indeed.
Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by happney65: 8:46am On Feb 21
How far clamping down on aboxifx and others ?

Nonesense!

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Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Ogiame: 8:46am On Feb 21
Una sure say Tinubu well so?

61 Likes 4 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by HateBigots: 8:46am On Feb 21
grin grin ... Trial and Error government

56 Likes 1 Share

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by igahdavid(m): 8:46am On Feb 21
Anytime I see News like this, I know naira is going to fall the more as this shows that the government doesn't know what they are doing.

40 Likes 1 Share

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by omoredia: 8:46am On Feb 21
Instead of u to ban BDCs and stop selling FX to them. BDC have more dollars than the CBN as we speak and the CBN is still selling dollars to them

47 Likes 7 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by tobenuel(m): 8:46am On Feb 21
Where no counsel is the people will fall, but in the multitude of counsellors there is safety.

5 Likes 2 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by kolosman(m): 8:46am On Feb 21
Abeg, make una allow crypto boys see food chop. Wetin una dey clampdown again for this kind intense hunger.

8 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Haydens: 8:46am On Feb 21
Na Ebola TInankwa's government be the founding father of trial and error.

Try your luck wan wound them. grin grin

16 Likes 2 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by kiddkash(m): 8:46am On Feb 21
Floating the currency when we don't have a big economy.

He can't go back now, because he would be mocked

41 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Dottore: 8:46am On Feb 21
Ok
Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by FourQu: 8:47am On Feb 21
Eh shocked chai I pity people from the crypto thread in the nairaland business section cry

They were so happy this past week about their bull/bear pip tinz, undecided Sootey ilegend dey brag with his binance screenshots upandan embarassed now this?

Eiyaah! Tinubu is about to happen to them BIG TIME

5 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by merits(m): 8:47am On Feb 21
fergie001:


SOURCE


Abeg they should leave BINANCE alone oo because my money is growing like grass there.

The last time I checked my balance I was amazed 🙀🙀🙀

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Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by ClearFlair: 8:47am On Feb 21
Still not addressing the main issues

3 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by chidiokay: 8:47am On Feb 21
These govt is deliberately not serious

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Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by abbeyd17(m): 8:47am On Feb 21
we are in deep shit and mess in the country

2 Likes 1 Share

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by adecz: 8:47am On Feb 21
If Mele Kyari of NNPC is not sacked
and investigated, the forex issues will
never be settled...


This man was selling our crude oil 🛢️🛢️in
dollars💲💲💲and sharing the money
with Buhari 😕😕😕

25 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Primusinterpares(m): 8:47am On Feb 21
Let them keep beating about the bush.
Chasing shafts and acting blind to the root cause of the problem.
Until the government address productivity , insecurity education and innovation.

All these things they are doing will only make it worst

16 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by adioolayi(m): 8:47am On Feb 21
Go after Banks MDs..

State Governors ...

Big corporations...

These are the ones into round-tripping

15 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Haaland21: 8:47am On Feb 21
Totally in support of this.

7 Likes 2 Shares

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by AntiChristian: 8:47am On Feb 21
We are always looking for ways to frustrate government policies!

We need to purge ourselves of corruption as its not only common with the leaders!

2 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by SalamRushdie: 8:48am On Feb 21
How will they achieve this ?

4 Likes 1 Share

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by samuelson06(m): 8:48am On Feb 21
These guys just want to kill tech and create more damage to the economy and the youths. No one should believe they know what they are doing. They don't. Binance P2P trading even depends on the street currency rates and not on the contrary.

This is the same thing they did to AbokiFX. Did that change anything? Why can't the government just do the right thing?

We can now see the result of closing recruitment into the CBN from the public. There's no time that the CBN openly advertises its vacant positions. Instead, they pick the children of the rich to fill those positions. Their action is now coming back to bite the nation because 90% of them in that place can't think critically and proffer solutions. They only speculate as they've been doing over the years.

Nigeria runs a monoeconony that depends on crude oil and there's no way the economy can see the light when we've bastardized that sector. If anything, we should manage everything around crude oil with utmost care to stabilize the economy. If I were Tinubu, I'll swallow the humble pie and restore fuel subsidy the way I met it. That's where our problems started from.

Another major error was the floating of the naira. Why was the man doing that? Time and time again, people have come forward to advise the FG not to devalue the naira. Devaluing the currency has always been the idea of the IMF to kill our currency. If there's any way the FG can undo that action, I'll advise them to do so.

We should also admit that a significant population of Nigeria doesn't contribute to the economy because they are only doing small businesses. The few people that can help the situation, e.g., Dangote, BUA, etc. seems to be taking advantage of the economy, especially as the government hardly audit or regulate their operation. Instead, they always want to frustrate the young tech guys that even try to help as a group.

As long as the FG keeps running away from doing the right thing, the naira will keep falling. For me, the FG is only pained that they can't use muscle to deal with the situation because they always like it that way, example is the way they are clamping down on the BDCs that have nothing to do with the weak naira, instead of dealing with the big problems that they caused.

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Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by jmoore(m): 8:49am On Feb 21
Fools in power. Always chasing shadows.

4 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by Zxcvbnmghtr: 8:49am On Feb 21
Nbote:
At this point, it is very very very very clear that these people are very very very very clueless. This is what you get when you bring in relics as leaders. Is Nigeria the only country using Binance? How can anyone who isn't a slowpoke claim Binance is a sophisticated heist against the economy

But you haven't told us what the solution is, you have only been making noise. Empty vessel makes the loudest of noise. grin

2 Likes

Re: Forex Crisis: FG Plans Clampdown On Binance, other Crypto Firms - Premium Times by tejumorelar: 8:49am On Feb 21
These our current leaders are failures

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