Binance Exit: Nigeria’s Crypto Community Reacts
The recent ban on Binance naira operations in Nigeria has sparked concerns among local cryptocurrency stakeholders. They believe that this ban will have a negative impact on many Nigerians, potentially leading to increased unemployment rates, particularly among the youth. Several local crypto stakeholders have expressed their disappointment, stating that the delisting of Nigerian naira-related services from Binance will create a void that can be filled by new crypto exchanges that comply with local regulations.
Nathaniel Luz, the CEO of Flincap, which is a liquidity platform for crypto exchanges, highlighted that numerous Nigerian traders who rely on peer-to-peer trading on Binance are now adversely affected. Luz mentioned that some traders have resorted to trading on WhatsApp and Telegram groups. Oladotun Wilfred Akangbe, the chief marketing officer of Flincap, emphasized the continuing uncertainty surrounding cryptocurrency regulation in Nigeria and how the decision to halt Binance operations can undermine confidence in the space. This, in turn, may lead to fear, uncertainty, and doubt in Nigeria’s crypto environment.
In an official statement on its website, Binance announced that naira balances would be automatically converted to Tether starting from March 8. The platform would cease support for naira deposits from March 5. Withdrawals were also suspended as of March 8, with the conversion rate set at 1 USDT for 1,515.13 naira. Binance’s peer-to-peer platform had already removed all naira trading pairs at the end of February.
The governor of the Central Bank of Nigeria raised concerns about illicit transactions allegedly being handled by crypto exchanges in Nigeria, pointing to suspicious fund flows at Binance. As these suspicions grew, the Nigerian House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng to appear before the committee before March 4. The Securities and Exchange Commission of Nigeria stated in 2023 that Binance Nigeria was not registered or regulated, deeming its operations in the country illegal. The Central Bank of Nigeria reversed its stance on cryptocurrency assets in December 2023, advising banks to disregard the previous ban on crypto transactions.
Local cryptocurrency stakeholders are wary of the ban on Binance naira operations, expressing concerns about its impact on the livelihoods of Nigerians and the potential rise in youth unemployment. They anticipate that new crypto exchanges will emerge to fill the void left by Binance, while complying with local regulations. The uncertainty surrounding cryptocurrency regulation in Nigeria and the decision to halt Binance operations have raised doubts and fears about the country’s crypto space.
5 thoughts on “Binance Exit: Nigeria’s Crypto Community Reacts”
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Banning Binance is a terrible move by the Nigerian government. It shows a lack of understanding of the potential benefits of cryptocurrencies.
Unemployment rates are already high in Nigeria, and this ban will only make it worse. The government needs to think about the impact on its citizens.
The decision to halt Binance operations will only create fear and uncertainty in Nigeria’s crypto environment. It’s disappointing that the government is not fostering a supportive environment for innovation.
Banning Binance will only drive people to unregulated platforms, putting their finances at risk. 🚫 The government should be protecting its citizens, not endangering them.
The concerns expressed by local cryptocurrency stakeholders about the impact on Nigerians’ livelihoods are valid. It’s crucial for new crypto exchanges to emerge and fill the void left by Binance while complying with local regulations.