September 24, 2023

Regulatory frame in Nigeria desires Binance banned

On Aug. 9, 2023, local reports revealed that the Association of Bureaux De Change Operators of Nigeria (ABCON), responsible for formulating regulatory frameworks for naira-dollar exchange, wants Binance banned.

Nigeria taking action

ABCON asserted that Binance’s activities contribute to the strain on the naira, a sentiment echoed by Nigeria’s Securities and Exchange Commission (SEC) in a June 2023 statement. 

The SEC emphasized that Binance Nigeria lacks proper registration and regulation, rendering its operations in Nigeria illegal. 

As the guardian of investor interests, the SEC underscored the substantial risks of dealing with Binance Nigeria or similar unregistered platforms. 

Notably, in May 2022, the SEC also issued a rulebook categorizing all cryptocurrencies as securities.

The association noted a shift in sentiment in the prevailing foreign currency market scenario. He highlighted that confidence dwindles when market sentiment turns pessimistic, a crucial factor for any currency. 

This situation reflects the current trend where optimism is waning, investor interest is declining, and Nigerians lack market confidence, prompting the pursuit of external financial solutions for a swift remedy.

Navigating regulation

Binance is the world’s largest cryptocurrency exchange by client count but has been making headlines as governments crack the whip on crypto businesses.

In the United States, Binance is being scrutinized for allegedly mishandling billions, risking investor funds. Prior, Binance withdrew from Canada and discontinued services in the Netherlands.

Despite challenges in Nigeria and exits from other countries, Binance is leading the way in adapting shifting regulations. Their focus is currently on South East Asia and Latin America where it has been approved by Japan and El Salvador regulators.

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