The Association of Bureaux De Change Operators of Nigeria (ABCON) has asked the government of Nigeria to ban Binance. In an interview, Aminu Gwadabe, the head of ABCON, said this: Mr Gwadabe says that the trade has an effect on the value of the naira.
It’s crucial to note that Binance, a well-known international cryptocurrency exchange, was not registered with or subject to regulation by Nigeria’s Security and Exchange Commission (SEC), making its operations there illegal.
In response, Binance stopped its Nigerian business and told users not to believe its information in a blog post.
Mr. Gwadabe found out that Binance’s trade is a key part of the investor and exporter windows as well as the secondary market. So, Binance can no longer do business in Nigeria.
Read also: Nigeria’s SEC declares Binance illegal in the country
It’s hard to win. “We need liquidity in order to ban Binance,” the head of ABCON said.
As a result, he said that Binance is the most liquid market. The Cryptocurrency exchange starts more than 1.2 million deals every second. This is possible because of the local content and unique features, even though the market is very liquid.
He also said that optimism is giving way to pessimism on the foreign exchange market, which is making people less trusting, and there aren’t enough businesses on the foreign exchange market in Nigeria.
He added that the naira is under a lot of pressure from banks and oil companies hoarding foreign currency. He said that the current government has made some changes to the economy that have helped keep an eye on illegal actions on the foreign exchange market.
Binance’s numerous issues
Due to problems with the regulatory bodies, Binance stopped letting people receive money in the US. Bloomberg said in 2022 that Nigerian officials and Binance Holdings Ltd. were talking about making a digital economic zone in order to speed up the use of blockchain technology in the West African country.
The cryptocurrency exchange could only keep talking to officials in the hopes that its investments in the country would not be wasted and that they would allow crypto to be used again.
Even though the cryptocurrency company Binance was doing better, it cut employee perks a few weeks ago. Changpeng Zhao, the CEO of the company, says that the business is still making money and is not harmed by a current SEC case.
The crypto exchange ran into another regulatory problem in Europe when it decided not to sign up with the German banking regulator. This happened after the crypto exchange had tried for months to get into the European country.
The exchange is also facing other problems in Europe, like how it was allegedly forced to leave the Netherlands because it did not meet the registration requirements to work as a virtual asset service provider. France is also looking into the company.
The CryptoCurrency company also pulled license applications in Austria, the Netherlands, and Cyprus. It is also being looked into by French officials, who accused the company of “acts of aggravated money laundering.”
Recently, the company and its CEO, Changpeng Zhao, have come under fire after the Securities and Exchange Commission filed a lawsuit charging Binance with running a “web of deception”.