Nigerian cryptocurrency professionals are raising concerns over Binance‘s recent decision to halt its naira dealings, forecasting that the ban may negatively impact the financial stability of several Nigerians and potentially escalate unemployment. The experts foresee the rise of alternative crypto exchanges eager to fill the gap left by Binance while remaining compliant with Nigerian regulations.
Impact on Nigerians’ Livelihood
Nathaniel Luz, CEO of Flincap, a liquidity provider for crypto exchanges, observed that many Nigerians depend on peer-to-peer (P2P) trading on Binance for their income. Despite the ban, these transactions continue through WhatsApp and Telegram groups. Flincap’s marketing head, Oladotun Wilfred Akangbe, warns that the persistent regulatory ambiguity and Binance’s withdrawal could diminish public trust in the Nigerian cryptocurrency landscape, fostering widespread unease and hesitation.
Binance’s Operational Changes
Binance has declared it will switch naira balances to USDT from March 8 but will end NGN deposits by March 10. Furthermore, the exchange will not support withdrawals post-March 8, and the fixed conversion rate will be 1,515.13 naira per USDT. Already at February’s end, Binance’s P2P platform had removed NGN trading pairs.
The Central Bank of Nigeria’s governor flagged possible illicit operations by crypto exchanges, citing dubious fund transfers involving Binance. This led to Binance CEO Richard Teng being summoned by the Nigerian House of Representatives Committee on Financial Crimes to testify before March 4. In 2023, the Nigeria Securities and Exchange Commission declared Binance’s Nigerian activities unauthorized, while the Central Bank of Nigeria reversed its stance on crypto assets in December, advising banks to lift the crypto transaction ban.