Coinbase, a prominent crypto exchange headquartered in the United States, has debunked allegations that it was instructed by the Nigerian government to prevent its citizens from using its crypto trading services.
The denial came directly from Coinbase’s CEO, Brian Armstrong, who addressed the issue through a post on X. Armstrong clarified that Coinbase’s services are still operational in Nigeria, with no interruptions reported.
Armstrong emphasized that Coinbase has not been approached or contacted by Nigerian officials regarding such directives.
This is inaccurate WRT Coinbase as far as I can tell.
Coinbase products are still operating (no interruption)
We haven’t received any outreach or communication from officials in Nigeria— Brian Armstrong 🛡️ (@brian_armstrong) February 23, 2024
Controversy Surrounding Crypto Restrictions In Nigeria
The controversy emerged following reports circulating earlier this week alleging that the Nigerian government had instructed telecommunication companies to block access to several crypto trading platforms, including Coinbase, Binance, and Kraken.
EXCLUSIVE: Forex Crisis: Nigeria plans clampdown on Binance, other crypto firmshttps://t.co/4eE0VWBgRq pic.twitter.com/ZNGAhdSjFw
— Premium Times (@PremiumTimesng) February 21, 2024
The purported motive behind these restrictions was to curb suspected manipulation of the foreign exchange market, particularly concerning the Nigerian Naira’s spot rate on platforms like Binance, which reportedly stood at approximately 1,850 naira per dollar before the alleged restrictions.
Despite the claims, many Nigerians have continued to access their accounts on platforms like Binance, indicating a lack of concrete evidence supporting the reported government directives.
Binance is still working perfectly in nigeria. So why are people saying it’s not? pic.twitter.com/jmj5Pw212B
— Cryptengine (@cryptengine) February 23, 2024
The absence of official confirmation regarding access restrictions to Coinbase, Binance, and Kraken adds further ambiguity to the situation.
Nigeria, recognized for owning one of the largest crypto populations globally, has witnessed significant transaction volumes in the crypto space, reaching $56.7 billion between July 2022 and June 2023, according to data from blockchain analytics firm Chainalysis.
Nigeria’s Dual Approach To Crypto and Blockchain
While Nigeria’s regulatory stance towards cryptocurrencies is quite unfavorable, there appears to be an existing 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 in enhancing security within the pharmaceutical sector.
Akindeinde advocated for utilizing blockchain to serialize pharmaceutical products and integrate robust security features to combat the proliferation of counterfeit drugs.
His proposal entails incorporating encrypted non-fungible token (NFT) tags into pharmaceutical items, providing them with unique identities and heightened security measures.
Through the encryption of these NFTs, authorized individuals can access ownership details and other essential information, ensuring the integrity of digital assets stored on the blockchain.
Featured image from Unsplash, Chart from TradingView
