The exit of Binance creates threats and opportunities in the Nigerian crypto community
Local cryptocurrency stakeholders in Nigeria currently have a ban on Binance Naira operations, which will affect the livelihood of many Nigerians and may increase youth unemployment in the country.
In exclusive interviews with Cointelegraph, local crypto stakeholders said that the removal of naira-related services from Binance will lead to the rise of new crypto exchanges that will fill the void created by Binance's exit, while figuring out a way to continue respecting local regulations.
The CEO of Flinkap, a liquidity platform for crypto exchanges, Nathaniel Luz, said many Nigerian traders continue to make a living through P2P trading on Binance. However, they are now able to trade on WhatsApp and Telegram groups.
Luz emphasizes this development as follows.
According to Oladotun Wilfred Akanbe, Chief Marketing Officer of Flinkap, the continued uncertainty of cryptocurrency regulation in Nigeria and the decision to take over Binance's operations could undermine the confidence of many people in the space. It can lead to a lot of fear, uncertainty and doubt (FUD) in Nigeria.
In an official statement on its website, the Binance crypto exchange said that it will convert nara balances to USDT starting March 8 at 8:00 am UTC, but will end support for NGN deposits after 14:00 UTC today.
According to the crypto company, withdrawals will no longer be supported after March 8 at 6:00 am UTC, with the automatic conversion rate at 1,515.13 Naira to 1 USDT. Binance's peer-to-peer platform canceled all NGN trading pairs at the end of February.
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In the year On February 27, the Governor of the Central Bank of Nigeria (CBN) criticized crypto exchange Binance in Nigeria for allegedly hosting illegal transactions, citing “suspicious flows” of funds.
As suspicions of Binance's illegal activities in Nigeria grow stronger, the Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng to appear before the committee before March 4.
In the year In 2023, the Nigerian Securities and Exchange Commission said Binance Nigeria was not registered or regulated by them, making its operations in Nigeria illegal. In the year In December 2023, the Central Bank of Nigeria changed its stance on crypto assets, advising banks to ignore the previous ban on crypto transactions.
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