He dropped this hint in response to the questions on the activities of cryptocurrency platforms like Binance, especially how the apex bank thought about balancing currency manipulation and not stifling innovation.

In response, Cardoso said that because the CBN has a responsibility to protect Nigerians (and investment community) it has been collaborating with other arms of the government to confirm some of their fears.

A check by Techeconomy indicated that, in a concerted effort to safeguard Nigeria’s foreign exchange market and combat speculative activities, the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria joined forces to tackle challenges in the market.

However, the effectiveness of these initiatives is being undermined by the activities of forex market speculators, both domestic and international, operating through various channels, thereby exacerbating the depreciation of the Nigerian naira and contributing to inflation and economic instability.

The CBN had initiated a comprehensive strategy to enhance liquidity in the forex market, including unifying the market segments, clearing outstanding forex obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility cap.

Again, to reduce the pressure on the naira, the Economic and Financial Crimes Commission (EFCC) also raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers.

Yet, recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market, causing ONSA and CBN to embark on a collaborative approach to tackle these infractions.

The partnership involved a coordinated effort with key law enforcement agencies, including the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service, and the Nigeria Financial Intelligence Unit (NFIU).

The primary objective of which is to systematically identify, thoroughly investigate and appropriately penalize individuals and organizations involved in wrongful activities within the Forex market.

By leveraging the expertise of these agencies, we aim to deter malicious practices, protect investor interests, and promote sustainable economic growth.

Speaking further, the CBN Boss noted “they are concerned that certain practices go on that indicate illicit flows going through a number of these entities and suspicious flows at best.

In the case of Binance, in the last one year alone, $26 billion has passed through Binance Nigeria from sources and users who we cannot adequately identify”

He however assured Nigerians that they are “determined” to do anything it takes to take charge of their market and not allow others to “manipulate our market in a way that ends up distortionary and sub-optimizes for all Nigerians”, which he said will not be accepted, as they will do their best to ensure the “infractions” do not take place.

In response, Binance stated that it has taken some actions to adjust trading on its platform by Nigerians to address what it described as an unusual currency movement.

While many Nigerians have been complaining of facing restrictions with buying and selling USDT on the platform since Tuesday, Binance said its action was “to protect users and prevent any abuse.”

Binance also distanced itself from the forex debacle in Nigeria saying its platform is “market-driven and not intended to be a proxy for currency pricing in Nigeria.”

Nigeria, one of Africa’s largest digital currency hubs, has been at the center of these developments, prompting stakeholders and prominent voices in the crypto community to engage in discussions about digital assets and the crucial role of government policies and regulations in the sector’s growth.

During this period, Yellow Card, a leading African crypto exchange, has also forged strategic partnerships, intensified crypto education efforts, and introduced innovative initiatives to advance digital money in Africa.

In 2021, the Central Bank of Nigeria dealt a severe blow to the thriving Nigerian cryptocurrency sector by banning financial institutions from participating in crypto transactions.

Consequently, crypto activities slowed down, prompting some enthusiasts to seek alternative avenues for exchanging their assets, while others simply gave up.

Fast forward to 2023, and the crypto sector has evolved, despite experiencing several ups and downs both on the global and local scene.

Governments and their financial regulatory agencies worldwide have come to realize that they cannot ignore cryptocurrencies and that regulation is the only way to effectively engage with the industry.

Despite initial resistance, the Nigerian government appears to be shifting its stance on digital currencies.

Less than a month after approving the Nigerian Blockchain policy, which encouraged the development of a framework for leveraging blockchain technology for national development, the Nigerian government passed the Nigeria Finance Act 2023 in June 2023.

The Nigeria Finance Act covers a wide range of financial concerns and recognizes the potential of digital assets as a revenue source. Under the Nigeria Finance Act 2023, individuals and businesses involved in buying, selling, and trading digital assets, such as cryptocurrencies, are now subject to a 10% tax on capital gains. This means that profits earned from the disposal of digital assets will be taxable.

Another significant event that sparked discussions among crypto stakeholders is the Securities and Exchange Commission (SEC) vs. Binance Nigeria Limited saga. The SEC described Binance Nigeria Limited’s activities as illegal due to its lack of registration with the Nigeria Corporate Commission.

As a result, the global office of Binance and its founder distanced themselves from Binance Nigeria. This event highlighted the need for clear and robust regulation of the Nigerian digital assets space.

To provide perspective on these recent events and activities shaping the African crypto space, several experts and brands have shared their insights on the role of cryptocurrency players and the best approaches to regulating cryptocurrencies in Africa.

Mr. Peter Mureu, Marketing Director at Yellow Card Financials, commented in a recent interview on the new tax regime for digital asset holders.

He emphasized that crypto exchanges play a crucial role in enabling the taxation of crypto assets. Yellow Card understands the importance of adhering to regulatory frameworks, promoting compliance, and is actively collaborating with governments and regulators.

Peter further emphasized the significance of education in fostering crypto adoption in Africa and ensuring users understand regulations and their impact on their assets.

In another interview, Lasbery Oludimu, VP Legal & Chief Data Protection Officer at Yellow Card Financials, explained that actions like the recently approved blockchain policy and the Finance Act by the Federal Government of Nigeria will pave the way for proper and robust regulation of cryptocurrencies in the country.

Aside from leading conversations on cryptocurrency regulation and advancement in Africa, Yellow Card Financials, a prominent pan-African crypto exchange, has been actively working to advance the African crypto space and empower users with tools to grow their wealth and access digital asset options.

Over the past three months, Yellow Card has completed two key partnerships aimed at enabling Africans to fully harness the potential of digital currencies, resolving cross-border payment challenges, driving education, and promoting the adoption of widely used stablecoins.

In April 2023, Yellow Card partnered with Block, the parent company of American payment services Cash App and Square, to facilitate cross-border payments between 16 African countries, including Nigeria, South Africa, and Ghana.

The pan-African crypto exchange also formed a strategic alliance with Tether, the company behind the widely used stablecoin USDT.

This collaboration aims to raise awareness, provide education, and foster the adoption of Tether’s stablecoin among students and young professionals in Nigeria, Kenya, and Ghana.

As part of this partnership, Yellow Card has taken its crypto education initiatives to a higher level by embarking on a series of university campus tours across the continent.

With growing interest and efforts by governments across Africa to participate in blockchain and digital assets, coupled with the recent increase in innovative activities and partnerships in the African crypto scene, strong indications suggest that the next decade will witness Africa harnessing the true power of the digital economy.

Ultimately, young and vibrant Africans who aspire to effectively participate in the global economy, take control of their assets, and attain financial freedom will be the true winners in this transformative journey.