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Binance, one of the world’s largest cryptocurrency exchanges, has restricted transactions involving 17 crypto-asset service providers and platforms, including three entities linked to Nigeria, as global regulators intensify scrutiny of digital-asset flows.
The exchange announced the restrictions in a notice to users, saying the measures would be implemented in phases based on the effective dates for each platform.
The Nigerian-linked entities affected are A7 Nigeria, A7 Africa, which operates in Nigeria and Zimbabwe, and PilotFinance Ltd. Binance said restrictions on the three platforms took effect from August 13.
Other affected platforms include Shelbit General Trading LLC and Aban Tether Exchange, which were restricted from August 7, while further restrictions took effect on August 23 for platforms including Rapira, Aifory Pro, ABCeX, WhiteBird, Tradex, NoOnecrypto, Monease, BitPapa, Exnode, Exnode Pay, HTX and EXMO.
Binance instructed users not to send funds to, receive funds from, or otherwise transact through the exchange with the listed platforms <a href="https://xpertsstudio.com/what-could-xrp-be-worth-by-december-after-a-50-rally/” title=”What Could XRP Be Worth by December After a 50% Rally?”>after their respective effective dates.
It warned that transactions attempted after the deadlines could be held for compliance reviews and that wallets associated with the transactions could face restrictions while investigations are conducted. Such transactions could also constitute a breach of Binance’s terms of use.
Why Binance is tightening restrictions
The move comes amid growing regulatory pressure from the United States and European Union on crypto platforms accused of facilitating transactions involving sanctioned individuals, entities or jurisdictions.
On August 7, the US Treasury sanctioned Dubai-based Shelbit, alleging that it facilitated transactions involving Iran’s Islamic Revolutionary Guard Corps and other Iranian-linked entities. Iran-based Aban Tether Exchange was also targeted.
The European Union has also expanded restrictions on crypto-asset platforms as part of its 21st package of sanctions against Russia, adopted on July 23. Several platforms named in the EU measures are among those Binance has now restricted.
Binance said the restrictions are necessary because it must comply with regulatory requirements in the jurisdictions where it operates.
What it means for Nigerian crypto users
For Nigerian cryptocurrency users, the immediate implication is that transactions between Binance and the three affected Nigeria-linked platforms may no longer function as they previously did.
Users who rely on these platforms for crypto transfers, liquidity, trading or other digital-asset services may need to find alternative compliant channels.
Transactions involving restricted entities could also face delays or additional compliance checks.
The development could increase compliance costs for Nigerian crypto businesses, particularly those operating across borders.
Exchanges and virtual-asset service providers may become more cautious about counterparties, wallet addresses and transaction flows as international sanctions increasingly influence how global platforms manage customers.
It also highlights a broader shift in the cryptocurrency industry that access to global crypto liquidity is dependent on regulatory compliance, not just on if a platform is technically capable of processing a transaction.
For Nigerian fintechs and crypto startups, this could make regulatory licensing, customer due diligence, transaction monitoring and sanctions screening important to maintaining access to international exchanges and liquidity providers.
The restrictions also come as Nigeria moves toward a more structured regulatory and tax framework for digital assets.
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Source: businessday.ng