Nigerian bureau de change union asks the government to ban Binance
ABCON believes the continued operation of Binance in the country threatens the naira’s stability.
The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the federal government to ban the operations of Binance, the global cryptocurrency exchange. The union claims the company is aggravating the pressure on the naira.
Key quote
The president of the union, Aminu Gwadebe, said:
“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 we have liquidity.”
Quick facts
- Gwadabe emphasized that Binance trading has become a significant player in both the Investor and Exporter window and the parallel market, noting that the platform has remarkable liquidity, with 1.2 million transactions occurring every second.
- He said the Nigerian foreign exchange market has shifted from a positive outlook to a negative one.
- According to him, pessimism in the market could erode citizen confidence, a crucial determinant of currency value worldwide.
- He added that the naira is currently under much pressure from FX hoarding by banks and oil companies.
- Still, he expressed hopes that with policies like the petrol subsidy removal and its benefits, the Central Bank will have access to inflows, enabling it to defend the fiat currency.
Key background
- ABCON’s action adds to the regulatory scrutiny that Binance is currently facing in Nigeria.
- The country’s Securities and Exchange Commission (SEC) on June 9, warned citizens against all activities of “Binance Nigeria Limited” (BNL). The Changpeng ‘CZ’ Zhao-owned global crypto exchange denied affiliations with BNL, saying it had no Nigerian operations.
- However, Mariblock revealed that the statement was meant for the global “Binance Holdings Limited” due to at least one complaint filed with the commission about the crypto exchange.
- Following Mariblock’s exclusive report detailing the events that preceded the SEC’s initial statement, the regulator issued another statement that explicitly labeled the operations of Binance Holdings Limited illegal in Nigeria.
- The SEC also ordered crypto companies to stop canvassing Nigerian investors.
