Ban Binance in Nigeria- Bureaux de change appeals to federal government

The Association of Bureaux De Change Operators of Nigeria, or ABCON, has petitioned the Federal Government of Nigeria to prohibit Binance’s operations in Nigeria. This was stated in an interview with ABCON’s president, Aminu Gwadabe. Mr. Gwadabe claims that the exchange rate is just one of many variables determining the value of the naira.

Remember how the Security and Exchange Commission (SEC) of Nigeria officially declared that Binance, a renowned cryptocurrency exchange with operations all over the world, was not authorized to operate in Nigeria since it was neither registered with the SEC nor subject to its regulation. The company confirmed it had suspended its fictitious Nigerian subsidiary and advised users not to believe any material connected to it in a response published in a blog post on the Binance official website.

Unfortunately, Mr. Gwadabe found that Binance’s trading is starting to act as an anchor for the parallel market, exporter’s window, and investor’s window. He claimed that Binance operations in Nigeria must come to a stop for this reason. There is a contest. The only way to outlaw Binance, according to the ABCON president, is if you have liquidity.

As a result, he stated that Binance is the most liquid market. The cryptocurrency exchange conducts over 1.2 million transactions every second, and thanks to its distinctive features and local content, it can thrive despite the market’s high level of liquidity.

In the current atmosphere of the foreign exchange market, he continued, optimism is giving way to pessimism, which is causing citizens to lose faith in the government, and there aren’t enough investments being made in Nigeria’s foreign exchange market.

He added that the naira is under a lot of pressure from banks and oil companies hoarding foreign currency. He pointed out that the current administration has made various economic adjustments that have helped to track illegal activity in the foreign currency market.

Binance’s several issues

In the US, Binance has stopped making withdrawals due to issues with regulatory organizations. Bloomberg reported in 2022 that Binance Holdings Ltd. and Nigerian authorities were negotiating the establishment of a digital economic zone to hasten the adoption of blockchain technology in the West African nation.

The Bitcoin exchange could only continue contacting decision-makers in the hopes that their investments in the nation would not go to waste and that they would once more permit the use of cryptocurrencies.

Even though the fortunes of the cryptocurrency company had turned around a few weeks prior, Binance had slashed employee benefits. Changpeng Zhao, the CEO of the company, insists that despite a current Securities and Exchange Commission investigation, the company is still profitable.

The cryptocurrency exchange abandoned its attempt to register with the German banking regulator, putting it in front of yet another regulatory roadblock in Europe. This came about after the crypto exchange had been attempting to enter the European nation for months.

The exchange is apparently compelled to depart the Netherlands because it did not fulfill the conditions for registration to conduct business as a provider of virtual asset services. This is just one of the difficulties the exchange is now encountering across Europe. Additionally, France is looking into the business.

French authorities are looking into the cryptocurrency company after they claimed it committed “acts of aggravated money laundering.” The cryptocurrency company reportedly withdrew license applications from Cyprus, Austria, and the Netherlands.

Following a lawsuit filed by the Securities and Exchange Commission accusing Binance of engaging in a “web of deception,” the business and its CEO, Changpeng Zhao, have been under pressure recently.

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Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

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Changpeng Zhao, the CEO of Binance, has resigned and is anticipated to enter a guilty plea to a criminal charge