Nigeria’s ABCON Urges Ban on Binance within the Country

The Association of Bureau De Change Operators of Nigeria (ABCON), a self-regulatory body representing licensed Bureaux de Change (BDC), has escalated its demands for the Federal Government of Nigeria to halt the operations of Binance within the country. This move comes as Binance  faces mounting regulatory pressure globally.

ABCON President Alhaji Aminu Gwadabe conveyed this call for action during an interview in Lagos on August 8, as reported by local news agency Nairametrics. The association has identified Binance as a significant contributor to the downward pressure on the Nigerian naira.

Gwadabe underscored Binance’s growing influence within Nigeria’s financial landscape, positioning itself as a central hub for activities in both the Investor and Exporters window, as well as the parallel market. He emphasized the remarkable liquidity witnessed on the platform, with an astonishing 1.2 million transactions taking place every second. In response, he proposed a pivotal solution: the prohibition of Binance’s operations within Nigeria, accompanied by a concentrated effort to enhance liquidity.

The ABCON president noted a worrisome shift from optimism to pessimism in the Nigerian foreign exchange market. This change in market sentiment, according to Gwadabe, holds the potential to undermine citizens’ confidence—a factor critical to global currency dynamics.

The Nigerian Securities and Exchange Commission (SEC) had previously cautioned domestic investors against involvement with Binance, citing the exploitation of the Binance brand by unauthorized entities. The advisory, issued on July 28, reiterated that Binance lacked the necessary authorization to operate in the country, emphasizing its violation of Nigerian law. In response, Binance Nigeria received a cease and desist notice from the cryptocurrency exchange.

As Nigeria pursues a cautious stance on the cryptocurrency sector, concurrently advancing its central bank digital currency (CBDC) initiatives, the nation has upgraded its CBDC system with near-field communication technology, bolstering contactless payment capabilities.

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