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Nigerians flocked to virtual private networks (VPNs) to gain access to cryptocurrency platforms after the government blocked access to the websites this week.
Searches for VPN, which allows users to access restricted pages by assuming a different location, spiked in the last two days after telecommunications companies and other internet service providers blocked access to popular platforms such Binance, Coinbase and Kraken on government’s instruction.
Many young Nigerians use cryptocurrencies as a hedge against frequent devaluation of the naira, but the government argues that the exchanges are used for currency speculation.
The naira has fallen from about 464 to over 1500 to a dollar since the central bank lifted its dollar peg in June in a bid to attract foreign-currency inflows.
Presidential spokesman Bayo Onanuga, who previously called for a ban on Binance, confirmed a Premium Times report on Tuesday that internet providers were already implementing an order agains the plartform. “Premium Times is correct,” he said in a post on X, responding to the report.
Binance reported nearly N5 billion in trades on its USDT/NGN pair in the last 24 hours, according to crypto news site, Cryptoslate, raising question about the effectiveness of the ban.
In an email to its users on Thursday, Binance said the restriction affected only its main website while its mobile app remained accessible in Nigeria at the time. It said market conditions dictate exchange rates on its platform.
“We continue to actively engage with regulators, policymakers and other relevant stakeholders to foster an open transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets,” it said.
Other crypto sites, Coinbase and Kraken, were also inaccessible although less popular options stayed open.
Nigerians turn to VPN
Searches for VPNs and popular options such as NordVPN rose sharply on Thursday, Google Trend showed. On Google, search rose peaked at around 1.00am on Thursday – the highest since January 5, according to Pluboard review.
On social media, crypto enthusiasts urged users to apply VPNs following the ban.
Mikael Bernard, a crypto and financial market analyst, cautioned against using U.S. servers with VPNs, as it could lead to a ban. He suggested opting for servers in other countries.
Binance is currently facing regulatory problems in the US, and recently agreed to a record $4.3 billion fine. Its former CEO, Changpeng Zhao, is awaiting sentencing.
Nigerians widely used VPNs when former Buhari administration imposed a ban on Twitter in 2021.
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