Binance faces ban calls by Nigerian Bureau De Change association

Binance faces ban calls by Nigerian Bureau De Change association

The Impact of Regulatory Pressure on Binance in Nigeria

The Association of Bureaux De Change Operators of Nigeria (ABCON) has recently called for the prohibition of Binance’s activities within the country, adding to the regulatory heat that the cryptocurrency exchange is experiencing. ABCON, a self-regulatory body representing all Central Bank-licensed Bureaux de Change (BDC), has raised concerns about Binance’s contribution to the pressure on the naira, Nigeria’s national currency.

According to reports by local news agency Nairametrics, Alhaji Aminu Gwadebe, the President of ABCON, highlighted that Binance has become a central point for trading on both the Investor and Exporters window as well as the parallel market in Nigeria. The platform’s remarkable liquidity is evident with an astonishing 1.2 million transactions occurring every second. Gwadebe argues that this high volume of trading poses a competitive challenge for local market liquidity and suggests that prohibiting Binance is the sole strategy to address this issue effectively.

The president of ABCON’s concerns stem from a transition in sentiment within Nigeria’s foreign exchange market. Gwadebe warns that the prevailing pessimism can significantly erode citizens’ confidence in the economy, which in turn influences the value of the currency. This negative sentiment, coupled with regulatory pressures, has led to the ABCON’s call for a ban on Binance’s operations in Nigeria.

The Nigerian Securities and Exchange Commission (SEC) has already issued a cautionary advisory to domestic investors about engaging with Binance. This advisory was in response to an earlier circular that addressed the activities of a deceitful entity unlawfully using the Binance brand. Binance Nigeria also received a cease and desist notice from Binance, further reinforcing the regulatory agency’s stance that the platform lacks the required authorization to operate within the country.

• Bitcoin’s ‘Taker Buy-Sell Ratio’ surges, indicating renewed bullishness.
• David Rubenstein, a private equity giant, advocates for Bitcoin.
• Akash Network price: Can bulls reach $1?

It is important to note that Nigeria, while being vigilant about the cryptocurrency sector, has been actively exploring the development of a central bank digital currency (CBDC). The country recently upgraded its CBDC system with near-field communication technology, which enables secure and contactless payments. This demonstrates Nigeria’s commitment to leveraging blockchain technology in a regulated and controlled manner.

Cointelegraph reached out to Binance for comments on ABCON’s call for a ban, but the exchange has yet to respond at the time of publication. This silence from Binance may indicate the complexity of the regulatory challenges it is currently facing in Nigeria.

In conclusion, the Association of Bureaux De Change Operators of Nigeria’s demand for a ban on Binance’s activities reflects the growing regulatory pressure on the cryptocurrency exchange. Nigeria is taking a cautious approach to cryptocurrencies while concurrently pursuing the development of its own CBDC. The evolving regulatory landscape in Nigeria serves as a reminder of the importance of adhering to the legal frameworks in place and operating within the boundaries set by regulatory authorities.

---

References:

• Nairametrics – BDC association urges FG to ban transactions with Binance
• Cointelegraph – Binance hits regulatory hurdles in Nigeria with ABCON’s ban call

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!