Nigerian authorities are fed up with Binance’s supremacy and are calling on the government to ban the platform amid the Naira crisis.
The end of Binance in Nigeria?
As the Naira crisis deepens, the Nigerian Authorities are urging the government to review the position of Binance in the interior of the country. Association of Bureaux de Change Operators of Nigeria (ABCON) indeed asked the government to prohibit all Binance throughout the country.
As we speak, Binance is the most liquid market, with 1.2 million transactions per second. So it’s a very liquid market, but it’s not a scary status; we can break it with our local content and our idiosyncrasies… we need to ban Binance, and the only way to do that is to have liquidity.Alhaji Aminu Gwadebe, President of ABCON
The Naira has devalued significantly in recent months. In June, the Central Bank of Nigeria ended its strict control over the local currency, deciding to unify all segments of the foreign exchange market. Despite this, the value of the naira rose from 768 naira to over 900 naira to the US dollar.
CZ’s crypto platform takes Africa by storm
Binance is the largest crypto exchange platform in the world, but especially in Africa. The exchange is one of the most popular both in Nigeria and on the continent as a whole. However, its dominance has been reinforced by the collapse of FTX last year.
Although many African countries, particularly those in Central Africa, are still struggling to recognize the importance of digital assets, Binance is slowly but surely making its way into the heart of the markets. It is one of the most widely used exchanges, along with Kraken to trade and sell assets.
Thanks to its Peer-to-Peer services, the company could circumvent the Central Bank’s 2021 ban on crypto trading, and it’s this power that worries the Authorities. Moreover, the latter have warned citizens against the illegality of crypto transactions. This doesn’t seem to be having much effect, however, as the rate of transactions continues apace while the naira crisis continues.
Binance faces many challenges across the globe. Between the SEC charges in America and those in Europe, the platform is constantly in the crosshairs of regulators. This time, it’s the turn of the Nigerian authorities. How long will CZ be able to cope with all these problems?
Passionate about stock market trading and cryptocurrencies, I write articles on the subject to share my experience and keep you up to date. I’m convinced that cryptocurrencies open up new perspectives and that everyone should experiment with them.