Binance Blocks Nigerian Users from Free Token Rewards and Airdrops Amidst Ongoing Regulatory Crackdown
Users lament the latest twist in the Binance-Nigeria saga, which denies them daily earnings of up to $50.
Global cryptocurrency exchange Binance has restricted access to its free token airdrops in Nigeria, adding another layer of friction to its strained relationship with the West African nation. This move follows regulatory scrutiny and increasing pressure from Nigerian authorities, further limiting the ability of Nigerian crypto users to earn rewards on the platform.
The Details
Reports indicate that Nigerian users who previously benefited from Binance’s free airdrop and reward programs took to social media to express their frustration. Binance’s airdrop system allows users to earn free tokens by completing simple tasks, such as signing up for new projects, staking test tokens, testing decentralized finance (DeFi) protocols, or simply holding specific assets. Additionally, users receive referral bonuses for inviting new participants to these activities, with some earning up to $50 daily.
However, last week, Nigerian users logging into Binance’s platform to claim rewards were met with a notice informing them that the giveaway feature was no longer available in their region. This unexpected restriction has left many users disappointed, as it was a vital means of earning passive income in a country grappling with economic hardship.
User Reactions
Many Nigerians view this development as a significant blow, especially given the country’s high unemployment rate and the continued depreciation of the naira.
A Nigerian student and frequent Binance user, Chike Nnadi, voiced his disappointment:
“It is a pity that for a crypto-loving country like Nigeria, our access to the industry is becoming severely limited as the days go by. Imagine being able to earn such an amount of money in a country where most people are living below the poverty line, and now having that opportunity taken away—it is frustrating.”
Regulatory Clampdown: A Longstanding Feud
Binance’s struggles in Nigeria began in early 2023 when the country’s financial authorities intensified their clampdown on cryptocurrency trading. Amidst a rapidly depreciating naira and concerns over the illicit use of crypto assets, Nigerian regulators placed significant restrictions on Binance and other peer-to-peer (P2P) exchanges.
In early 2024, local internet service providers (ISPs) were instructed to block access to Binance’s website. Shortly after, Binance voluntarily disabled its P2P trading platform in Nigeria, citing regulatory pressures and compliance concerns. This left Nigerian traders with limited options for crypto transactions, forcing many to seek alternative means.
Behind the Scenes: Users Seek Workarounds
Despite these restrictions, Nigerian crypto users have turned to over-the-counter (OTC) P2P vendors and other alternative exchanges. Additionally, many have resorted to using Virtual Private Networks (VPNs) to bypass Binance’s geo-restrictions and regain access to the platform.
VPNs allow users to change their location and mask their internet protocol (IP) addresses, enabling them to continue accessing Binance’s services. However, this workaround presents additional risks, including potential account suspensions, security vulnerabilities, and breaches of Binance’s terms of service.
What’s Next for Nigerian Crypto Users?
With Binance continuously tightening its policies in response to Nigerian regulatory pressure, the future remains uncertain for the country’s crypto community. Many local users are now seeking alternative platforms that still support reward-based programs and P2P trading without stringent restrictions.
As the regulatory landscape in Nigeria evolves, crypto enthusiasts and traders will need to stay informed and adaptable, leveraging new solutions that comply with local laws while maintaining access to global crypto markets.
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