Nigeria currency traders want Binance banned

The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Nigerian government to ban the cryptocurrency exchange Binance from operating in the country.

Aminu Gwadabe, president of ABCON, said Binance’s activities have substantially affected the value of the naira.

“Understanding Binance’s role reveals that it has become the foundation of both the investors and exporters window as well as the parallel market, which is concerning,” Mr Gwadebe said on Tuesday in Lagos.

“To counter this, we must adopt measures that can curtail Binance’s influence. The optimal approach involves restricting Binance’s operations, and this can only be achieved with enhanced liquidity.”

– Falling naira

Binance is an online cryptocurrency exchange platform that enables users to trade digital currencies. The exchange also offers additional services that allow users to earn interest and conduct transactions using cryptocurrencies.

Many Nigerian cryptocurrency traders use the platform for their daily transactions, which are mostly denominated in dollars, mounting pressure of the naira.

The naira has fallen over 60% since the central bank allowed it to trade more freely in June. On Tuesday, a dollar exchanged for 897 naira at the black market and 757.1 naira at the official spot market.

– Previous ban

In June, the Nigerian Securities and Exchange Commission (SEC) declared the operations of Binance Nigeria Limited as unlawful.

“SEC Nigeria neither recognizes nor regulates the activities of Binance Nigeria Limited. Consequently, its operations within Nigeria are deemed illegal. Any individuals engaging with this entity are taking personal risks,” it said.

The ABCON’s president expressed concern over waning optimism in the currency parallel market.

“Investors are becoming hesitant, and the local populace is losing faith in the market. We are compelled to seek external financial interventions as a short-term remedy,” he said.