Crypto Exchanges in Nigeria Cease Naira Purchases of USDT and USDC Amid Central Bank Scrutiny: Report
Several crypto companies in Nigeria have made the decision to disallow users from buying the Tether (USDT) and USD Coin (USDC) stablecoins with Naira in light of renewed scrutiny from the Central Bank of Nigeria (CBN).
The move comes as regulators intensify their focus on crypto platforms, citing concerns that they facilitate speculative trading and market manipulation.
The decision was reportedly made during a meeting of crypto founders, where participating individuals agreed to suspend the trading of these stablecoins on their platforms, sources familiar with the matter told TechCabal .
While details of the meeting have not been disclosed, it is believed that at least two crypto exchanges have already informed their Nigerian customers about the new development, the report said.
It added that notifications sent to customers explicitly stated that the buying and selling of USDT and USDC with Naira would no longer be possible.
Crypto exchanges have been increasingly facing regulatory scrutiny, with recent reports highlighting difficulties in accessing the websites of popular platforms such as Coinbase, Quidax, and Binance.
The Central Bank governor Olayemi Cardoso has claimed that an estimated $26 billion had passed through Binance Nigeria from unidentified sources and users, further intensifying regulatory concerns.
The Digital Currency Coalition, an autonomous group, also alleged that speculative trading on the platform played a significant role in the devaluation of the Naira against USDT by 113.1% since February 2023.
The situation took a concerning turn when unverified reports emerged suggesting that two executives from a crypto company were arrested, possibly in an attempt to force the company to
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