The leader of Nigeria’s Association of currency exchangers has accused the crypto giant Binance of helping to worsen the local currency’s woes and asked authorities to consider banning the platform. The leader suggested that the optimism which ensued after Tinubu’s government floated the naira has now given way to pessimism.
The Naira’s Woes
The president of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has reportedly asked the Nigerian government to consider banning the crypto giant Binance. Gwadabe insisted that the crypto exchange platform is partly to blame for Nigeria’s persistent currency woes which have now seen the naira fall to a record low versus the U.S. dollar.
The remarks by Gwadabe suggest that both the Bola Ahmed Tinubu government and some key players in Nigeria’s foreign exchange market are seeking to loosen the top crypto exchange’s stranglehold on the Nigerian market. To illustrate, sometime in early June it was widely reported that the Nigerian Securities and Exchange Commission had banned Binance Nigeria Limited, the crypto exchange’s supposed affiliate.
However, following the revelations that Binance Nigeria Limited had no relationship with Binance, the SEC was forced to issue another prohibition order which barred any entity using the name Binance from operating in the East African state. The regulator also warned residents against using the platform.
Meanwhile, in remarks published by the People’s Gazette, Gwadabe highlighted Binance’s perceived dominance and how this poses a threat to the Nigerian economy.
“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,” explained Gwadabe.
The ABCON president added that the optimism which ensued after Tinubu’s government floated the naira, has now given way to pessimism.
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