- Local cryptocurrency stakeholders express concerns over the prohibition of Binance naira operations in Nigeria, fearing adverse effects on livelihoods and potential increases in youth unemployment.
- Stakeholders anticipate the emergence of new cryptocurrency exchanges following Binance’s departure from Nigeria, aiming to fill the void while complying with regional laws.
- Expert warns that Binance’s exit from Nigeria and regulatory uncertainties may undermine trust within the cryptocurrency industry, fostering anxiety and skepticism among Nigerian crypto enthusiasts.
OUR TAKE
Binance’s departure from Nigeria’s crypto market triggers both concerns and opportunities. Stakeholders fear the ban on Binance’s naira operations could harm livelihoods and exacerbate youth unemployment. The future of Nigeria’s crypto community depends on regulatory clarity and the capability of emerging exchanges to fill the void left by Binance’s exit, shaping the industry’s trajectory in the country.
–Sylvia Shen, BTW reporter
Local cryptocurrency stakeholders have expressed regret at the current prohibition on Binance naira operations in Nigeria, claiming that it will negatively impact many Nigerians’ livelihoods and may lead to a rise in the country’s young unemployment rate.
Binance exit sparks predictions
According to an interview with Cointelegraph, local cryptocurrency stakeholders predicted that other cryptocurrency exchanges would emerge as a result of Binance delisting its Nigerian naira-related services. These exchanges will fill the void left by Binance’s departure by adhering to regional laws.
Oladotun Wilfred Akangbe, the chief marketing officer of Flincap, a liquidity platform for crypto exchanges, claims that the decision to cease Binance operations in Nigeria and the ongoing ambiguity surrounding cryptocurrency legislation have the potential to erode the faith of many in the industry.
He said that it may cause a great deal of anxiety, apprehension, and skepticism among Nigeria’s cryptocurrency community.
Also read: Binance, SEC argue about regulator oversight of cryptocurrencies
Binance implements changes
Binance said on its official website that as of March 8, it would automatically convert naira holdings to tether, and as of March 5, it will no longer support naira deposits.
Withdrawals have been prohibited since March 8, following Binance’s delisting of all naira trading pairings on its peer-to-peer platform in late February.
Also read: Nigeria issues summons to Binance CEO over alleged financial crimes
Nigerian officials investigate Binance
The governor of the Central Bank of Nigeria contended on February 27 that Binance exchanges in Nigeria were under suspicion for facilitating illicit transactions, citing “suspicious flows” of funds.
The Nigerian House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng to appear before March 4.
