Binance Is Under Fire from Nigeria’s Bureau De Change Association
Gwadabe has reportedly stated that Binance trading has become a focus for the Investors and Exporters window as well as for the parallel market.
Binance continues to face increasing regulatory pressure as the Nigerian federal government, through the Association of Bureau De Change Operators of Nigeria (ABCON), is pushing the federal government to conduct the activities to be banned from Binance within the country. ABCON is an independent self-regulatory body that acts as an umbrella for all Central Bank-licensed Bureaux de Changes (BDC). This comes in response to Binance reportedly being recognized by the federation as the main contributor to the pressure on the Nigerian naira. That’s the advice Alhaji Aminu Gwadabe gave in an Aug. 8 interview in Lagos, Nairametrics reports.
Gwadabe reportedly stressed that Binance trading is increasingly establishing itself as a focal point for the investor and export window as well as the parallel market, noting that the platform is seeing impressive liquidity at 1.2 million transactions per second. He said that the only way to solve this competition problem is to ban Binance. The only strategy to achieve this goal is to increase liquidity.
The report states that the ABCON President has noticed a shift from a positive to a more negative outlook on the Nigerian foreign exchange market. Gwadabe reportedly said that market pessimism could lead to a loss of public confidence, which would have a major impact on currencies around the world.
On July 28, the Nigerian Securities and Exchange Commission warned domestic investors against investing in Binance, a cryptocurrency exchange. This recommendation was in reference to an earlier circular issued in response to the activities of a company illegally exploiting the Binance brand. Binance Nigeria then received a cease and desist letter.
According to the regulator, the platform does not have the necessary permits to operate in the country. It also stated that its activities were illegal.
