Nigeria's Cryptocurrency Stakeholders Decry Binance Naira Operations Ban, Fear for Livelihoods and Employment
Summary:
Nigerian cryptocurrency experts express concerns over the ban on Binance's naira operations, fearing it could hurt livelihoods and increase unemployment. After Binance's exit, new, regulatory-compliant exchanges are expected to emerge. Many traders, currently affected by the ban, resort to trading on platforms like WhatsApp and Telegram. The ongoing regulatory uncertainty could create fear, uncertainty, and doubt (FUD) in the cryptocurrency space. Following the ban, Binance will convert naira balances to USDT from March 8, ceasing NGN deposits and withdrawals later the same day. Meanwhile, investigations into alleged illegitimate transactions connected to Binance continue.
Cryptocurrency experts in Nigeria have expressed their discontent over the current proscription of Binance's operations involving the naira. They argue that this decision will impact the livelihoods of numerous Nigerians and potentially escalate youth unemployment in the nation. Several of them have communicated to Cointelegraph that Binance's discontinuation of naira-related services will pave the way for the emergence of fresh crypto exchanges. These new entities are expected to fill the gap left by Biance while complying with local rules.
Nathaniel Luz, CEO of Flincap, a liquidity platform for crypto exchanges, commented on the situation explaining that a multitude of Nigerians traders who depend on peer-to-peer trading on Binance for their income are now being disrupted. They are navigating this situation by trading on platforms such as WhatsApp and Telegram. Luz called attention to this emerging trend.
Simultaneously, Flincap's chief marketing officer, Oladotun Wilfred Akangbe, believes that the ongoing ambiguities regarding cryptocurrency laws in Nigeria paired with the decision to halt Binance's operations could deplete the trust of many involved in this field, potentially triggering profound fear, uncertainty, and doubt, otherwise known as FUD, in Nigeria's crypto domain.
Binance, in a formal announcement on its website, mentioned that it will automatically transition naira balances to USDT from March 8, starting 8:00 am UTC, but will stop facilitating NGN deposits after 2:00 pm UTC the same day. The crypto firm also specified that they will discontinue support for withdrawals past 6:00 am UTC on March 8 and that the exchange rate for automatic conversions will be set at one USDT to 1,515.13 naira.
The platform had already delisted all NGN trading pairs in late February. On February 27, the governor of the Central Bank of Nigeria stated that crypto exchanges in the country are suspected of engaging in illegitimate transactions, pinpointing dubious fund flows connected to Binance.
These suspicions concerning Binance's supposed illegal operations in Nigeria have amplified, leading to the House of Representatives Committee on Financial Crimes requesting the presence of Binance CEO Richard Teng before the committee prior to March 4.
Furthermore, in 2023, the Nigeria Securities and Exchange Commission announced that Binance's operations in the country were not sanctioned by them, deeming them unlawful. However, in December 2023, the Central Bank of Nigeria revised its position regarding crypto assets, encouraging banks to disregard their previous prohibition on crypto transactions.
Published At
3/10/2024 2:59:39 PM
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