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Renewed Calls for Ban of Binance in Nigeria

Binance continues to face further regulatory pressure as the Association of Bureau De Change Operators of Nigeria (ABCON) implores the Federal Government of Nigeria to prohibit Binance’s operations within the country.

All Bureaux de Change (BDC) with central bank licenses are grouped under ABCON, a self-regulatory organization.

Alhaji Aminu Gwadebe, the president of ABCON, reportedly expressed concerns about Binance’s growing sway over the trading environment. He pointed out that Binance has taken over both the Investor and Exporters window and the parallel market to become the preferred platform for investors and exporters.

Binance is the most liquid market, boasting 1.2 million transactions per second in trading volume.

Gwadebe underlined the importance of countering this dominance with regional content and distinctive market characteristics.

If you know about Binance, you will know that Binance trading is becoming the anchorage of both the investors and exporters window and the parallel market, which is unfortunate. So, we have to do something that can stop Binance. It’s a competition; we need to ban Binance and the only way to do so is if you have liquidity. As I speak, Binance is the most liquid market; they do 1.2 million transactions per second. So it’s a very liquid market but that is not a scary status, we can break it through our local content and peculiarities.

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Gwadebe highlighted his concern over the current lack of optimism in the foreign currency market, emphasizing how it undermines investor confidence. He listed a number of causes for the pressure on the naira, including currency hoarding by banks and oil corporations, the payment of school fees, speculative activity, and round-trip travel.

So we are seeing a scenario where optimism is giving way to pessimism; investors are not coming, Nigerians don’t have confidence in the market and we have to look for external finances that are coming in as a quick fix.

There is a lot of pressure on the naira, from foreign exchange hoarding by the banks and oil companies.

Is it Nigerians that want to pay school fees, round-tripping, speculations, among others. All these galvanised to put pressure on the naira.

Spike and volatility did not start now, it’s something the present government inherited and has gone a long way in checkmating illegal behaviors around foreign exchange market and that is the objective of the unification.

On July 28, the Nigerian Securities and Exchange Commission (SEC) issued a warning to local investors about using the cryptocurrency exchange Binance. This advise made reference to an earlier circular that had been sent in response to the actions of a fraudulent company that was improperly using the Binance brand. Binance responded by sending Binance Nigeria a cease and desist letter.

The regulatory body emphasized that the platform’s operations are illegal and confirmed that it does not have the necessary authorization to operate in the nation.

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