Nigeria’s Regulatory Authority Urges Ban On Binance

Aug. 10, 2023
Nigeria’s Regulatory Authority Urges Ban On Binance

The Association of Bureaux De Change Operators of Nigeria (ABCON) urged the Federal Government of Nigeria to ban Binance’s services in the country. The move further hit the exchange’s business as it is already facing regulatory issues globally.

ABCON is a self-regulatory organization overseeing all officially licensed Bureaux de Change (BDCs) under central banks. On August 8, the President of ABCON, Alhaji Aminu Gwadabe, made the call for action during an interview in Lagos, as reported by Nairametrics, a local news agency. 

Gwadabe said Binance is one of the factors behind the pressure on the Naira (Nigerian currency). Furthermore, Seychelles-based exchange influence in the Nigerian financial space is gaining strength, which is a negative development, he stressed.

Binance has incredibly high liquidity. The platform process 1.2M transactions per second, he emphasized. Although this is a very liquid market, it can be beaten through local content and peculiarities. 

According to Gwadabe, the platform is a “competitor” to local Bureau De Change (BDC) operators, and the Nigerian government should ban it.

He added:

“If you know about Binance, you will know that Binance trading is becoming the anchorage of both the investors and exporters’ window and the parallel market, which is unfortunate.”

In June, the Nigerian Securities and Exchange Commission (SEC) pointed out a trading website called “Binance Limited Nigeria.” However, Binance clarified that it is not connected to this entity.

Moreover, the financial watchdog issued a circular on July 28, advising local investors to be careful about getting involved with Binance. It operated illegal operations because the exchange was not registered, the agency said.

Crypto Developments in Nigeria

Apart from this ban, Nigeria aims to regulate cryptocurrency to stay up-to-date with global economic innovations. The Nigerian government passed a national blockchain bill in May to increase its digital economy.

In 2023, the value of Nigeria’s central bank digital currency (eNaira) transactions jumped 63% to 22 billion naira ($47.7 million). Also, about 13 million users have registered for e-wallets. As of May 2023, about 6% of Nigeria’s population owns cryptocurrencies, data shows.

Even though there are difficulties in Nigeria and other places, Binance is still ahead in adjusting to changing rules. The exchange is getting interested in Latin America and Southeast Asia. Recently, it became the licensed crypto exchange in El Salvador and Japan.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.