- Binance is still facing increased regulatory pressure as the Federal Government of Nigeria requests to forbid Binance’s operations.
- The ABCON president reportedly observed a shift in the outlook for the Nigerian foreign currency market from optimism to pessimism.
Binance is still facing increased regulatory pressure as the Federal Government of Nigeria is requested to forbid Binance’s operations within the country by the Association of Bureau De Change Operators of Nigeria (ABCON).
Bureaux de Change (BDC) that have been granted central bank licenses are all covered by ABCON, a self-regulatory organization. The group apparently recognized Binance as a substantial contributor to the pressure on the naira, prompting this move.
In an interview conducted on August 8 in Lagos, Alhaji Aminu Gwadabe, president of ABCON, offered this advice, according to Nairametrics, a local news organization.
According to reports, Gwadabe emphasized that Binance trading has become a focal point for both the Investor and exporter window and the parallel market, pointing out that the platform records exceptional liquidity, with 1.2 million transactions occurring every second.
Additionally, Gwadabe said this presents a competitive issue, the answer to which is to forbid Binance, and the only way to do this is through increasing liquidity.
The ABCON president reportedly observed a shift in the outlook for the Nigerian foreign currency market from optimism to pessimism. According to reports, Gwadabe emphasized that the pervasive pessimism in the market’s mentality has the potential to cause a decline in residents’ confidence, a key factor impacting currencies around the world.
On July 28, the Nigerian Securities and Exchange Commission (SEC) warned local investors about using the cryptocurrency exchange Binance. This advice referred to an earlier circular that had been sent in response to the actions of a dishonest company that was improperly using the Binance brand. Binance responded by sending Binance Nigeria a cease and desist letter.
The regulatory body highlighted that the platform’s operations are illegal and confirmed that it does not have the appropriate permission to operate in the nation.
Nigeria has embraced a watchful stance towards the crypto industry while also promoting its central bank digital currency (CBDC). In July, it enhanced the CBDC system with near-field communication technology to improve contactless payments.