Local stakeholders in the cryptocurrency industry in Nigeria have expressed concern over the recent ban on Binance’s naira operations in the country. They believe that this move will have a negative impact on the livelihoods of many Nigerians and could contribute to an increase in youth unemployment.
In interviews with Cointelegraph, these stakeholders have stated that the delisting of naira-related services from Binance will create an opportunity for new crypto exchanges to emerge. These exchanges would comply with local regulations and fill the void left by Binance’s departure.
Nathaniel Luz, the CEO of Flincap, a liquidity platform for crypto exchanges, pointed out that many Nigerian traders who rely on peer-to-peer trading on Binance will be affected by this ban. However, he mentioned that some traders have already shifted to trading on WhatsApp and Telegram groups.
Oladotun Wilfred Akangbe, the chief marketing officer of Flincap, expressed concern about the uncertainty surrounding cryptocurrency regulation in Nigeria and the decision to halt Binance operations. He believes that this could erode the confidence of many individuals in the crypto space and lead to fear, uncertainty, and doubt.
In an official statement, Binance announced that it would automatically convert naira balances to Tether (USDT) and cease support for naira deposits. Withdrawals have also been restricted, and the conversion rate is set at 1 USDT for 1,515.13 naira. Binance’s peer-to-peer platform has already delisted all naira trading pairs.
The governor of the Central Bank of Nigeria previously raised suspicions about crypto exchanges in Nigeria, accusing them of facilitating illicit transactions. These suspicions were directed towards Binance, citing “suspicious flows” of funds. As a result, the Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng to appear before them.
Furthermore, the Securities and Exchange Commission of Nigeria stated in 2023 that Binance Nigeria was not registered or regulated by them, making its operations in Nigeria illegal. However, in December 2023, the Central Bank of Nigeria reversed its stance on crypto assets and advised banks to disregard the previous ban on crypto transactions.
Overall, the ban on Binance’s naira operations in Nigeria has sparked concerns among local crypto stakeholders. They anticipate the emergence of new exchanges to fill the void left by Binance, while emphasizing the need for clear and consistent regulations to maintain confidence in the crypto space.