Binance Exit Stirs Concerns and Opportunities in Nigeria’s Crypto Community

The recent ban on Binance’s naira operations in Nigeria has elicited concerns among local cryptocurrency stakeholders, who believe it will impact the livelihoods of many Nigerians and potentially contribute to increased youth unemployment in the country. In an interview, these stakeholders expressed worries about the implications of Binance’s exit and highlighted the potential rise of new crypto exchanges that comply with local regulations to fill the void left by Binance.

Nathaniel Luz, CEO of Flincap, a liquidity platform for crypto exchanges, noted that several Nigerian traders who relied on Binance for peer-to-peer trading are now affected. Some traders have reportedly shifted to trading on WhatsApp and Telegram groups. The Chief Marketing Officer of Flincap, Oladotun Wilfred Akangbe, raised concerns about the ongoing regulatory uncertainty surrounding cryptocurrency in Nigeria, emphasizing that the suspension of Binance operations could create fear, uncertainty, and doubt in the country’s crypto space.

Binance officially announced on its website that it would automatically convert naira balances to Tether (USDT) and cease support for naira deposits and withdrawals. The decision to delist naira trading pairs on Binance’s peer-to-peer platform occurred in late February.

The Central Bank of Nigeria’s governor had earlier raised suspicions about crypto exchanges in Nigeria, including Binance, allegedly handling illicit transactions. The Central Bank’s concerns, combined with the lack of registration or regulation of Binance Nigeria by the Securities and Exchange Commission, contributed to the decision to ban Binance’s operations in the country. Despite regulatory challenges, the crypto landscape in Nigeria continues to evolve, with new exchanges expected to emerge to address the changing market dynamics.

By Urik

My professional background is in public relations and I am the founder of Cryptochating. My journey into blockchain technology started four years ago, and I haven't looked back since then. The future of decentralized technology is incredibly fascinating to me, and I am passionate about communicating how it will change the world.

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