Nigeria’s standing in the global cryptocurrency realm is at risk due to recent government crackdowns on domestic exchanges. Nonetheless, Oladotun Wilfred Akangbe, the chief marketing officer of Flincap crypto exchange, remains confident that the country can withstand the challenges.
In an interview with Cointelegraph, Akangbe voiced concerns about how recent events have affected Nigeria’s reputation in the international crypto market. However, he also noted that Nigeria has overcome more significant obstacles in the past.
In February, the Nigerian government collaborated with the country’s telecommunication providers to block local crypto users from accessing websites of various crypto exchanges like Binance and OctaFX, among others.
Subsequently, authorities accused Binance of illicitly transferring $26 billion out of the country and invited the exchange to send representatives for discussions on the matter.
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In response to the allegations of Binance manipulating Nigeria’s fiat currency, the naira, Binance executives Tigran Gambaryan and Nadeem Anjarwalla visited Nigeria in February. However, they were detained and faced charges related to money laundering after engaging with Nigerian officials regarding Binance’s regulatory concerns. Anjarwalla managed to escape custody and was later apprehended in Kenya, where he faces extradition.
Akangbe highlighted that controversies in Nigeria’s crypto sector are expected due to the country’s increasing adoption of cryptocurrencies. He emphasized Nigeria’s vital role as a cryptocurrency user and blockchain adopter on a global scale and remains optimistic about the future of crypto in the country.
Akangbe revealed that the current sentiment towards crypto in Nigeria is a combination of enthusiasm and caution. While there is excitement about the potential of the crypto industry, concerns linger regarding regulations, cryptocurrency volatility, and the risks of scams and fraud.
He further explained that the uncertainties arise from the ongoing back-and-forth between the Nigerian government and stakeholders in the crypto space. Local crypto analysts have expressed disappointment with the government’s unfavorable stance on crypto in resolving the nation’s foreign exchange challenges.
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Exchange executive predicts Nigeria's crypto standing will endure despite recent challenges.