Ban The Operations Of Binance In Nigeria : The president of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, urged the federal government to cease the operations of the cryptocurrency exchange firm, Binance, within Nigeria. Gwadabe emphasized the necessity of this action to fortify the national currency, the naira. In an interview conducted in Lagos on Tuesday, Gwadabe conveyed his concerns to the media.
Gwadabe highlighted that Binance’s activities were exerting undue pressure on the naira, making it imperative to curtail its operations. He underscored that Binance’s trading activities were currently playing a pivotal role in both the investor and exporter windows, as well as the parallel market, leading to an unfortunate situation.
He stated, “Binance trading has effectively become the cornerstone of both the investor and exporter windows and the parallel market, which is indeed regrettable.”
In his opinion, a strategic intervention is necessary to halt Binance’s operations, citing the need to foster competitiveness. Gwadabe asserted that by boosting local resources and leveraging unique market dynamics, the dominance of Binance’s highly liquid trading could be countered.
He remarked, “Presently, Binance represents the most liquid market, processing approximately 1.2 million transactions per second. While this showcases its robust liquidity, it is not an insurmountable challenge. We possess the means to disrupt this dominance by harnessing our indigenous capabilities and market idiosyncrasies.”
Gwadabe further highlighted the strain the naira is currently under due to various factors, some of which have been inherited by the current administration. He drew attention to foreign exchange hoarding by financial institutions and oil companies, as well as activities such as school fee payments, roundtripping, and speculative behaviors by citizens, all contributing to the pressure on the national currency.
He expounded, “The naira is enduring substantial stress arising from foreign exchange hoarding among banks and oil corporations. Factors such as individuals engaging in practices like paying school fees abroad, roundtripping, and speculative behaviors have collectively compounded the strain on the naira.”
Gwadabe noted that the government’s initiative to unify the exchange rate was a crucial step toward addressing these challenges, indicating that this unification sought to mitigate illicit activities within the foreign exchange market.
It’s worth noting that in June 2023, Nigeria’s Securities and Exchange Commission (SEC) declared that Binance Nigeria was operating illegally, as it had not obtained the necessary registration for its operations in the country.