Binance faces increasing regulatory scrutiny as a Nigerian trade union calls for the Federal Government of Nigeria to ban the exchange’s operation within the West African nation.
In a Tuesday Interview with the News Agency of Nigeria (NAN), Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), expressed that the Seychelles-based exchange was one of the factors behind the pressure on the Nigerian Naira and should be prohibited from the operating within the Nigerian Market.
Binance Growing Influence In Nigeria Is “Unfortunate,” ABCON’s President Says
While speaking to NAN, ABCON’s president, Gwadabe, noted that Binance’s influence in the Nigerian financial markets was growing strong, which he described as a negative development. Gwadabe 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.
According to Aminu Gwadabe, Binance is a “competitor” to local Bureau De Change (BDC) operators and should be banned by the Nigerian government. However, he admitted that ABCON faces replacing the market liquidity of prominent crypto.
Gwadabe said:
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 you have liquidity. As I speak, Binance is the most liquid market; they do 1.2 million transactions per second. So it’s a very liquid market, but that is not a scary status, we can break it through our local content and peculiarities.
Total crypto market valued at $1.143 trillion on the hourly chart | Source: TOTAL chart on Tradingview.com
ABCON Piles More Regulatory Pressure On Binance’s Operations In Nigeria
ABCON’s objection to Binance’s operation is particularly significant as the association also serves as a regulatory body authorized by the Central Bank of Nigeria (CBN) to oversee the activities of all BDC operators in the nation.
In addition, ABCON is involved by the CBN in developing policies that regulate the naira-dollar exchange rate. Recently, Binance’s activities have been under regulatory heat in Nigeria and other nations worldwide.
On July 28, Nigeria’s Securities and Exchange Commission (SEC) issued a circular advising Nigerians to avoid trading with the crypto exchange as it was not registered with the Commission and, thus, was running an illegal operation.
Earlier In June, the financial regulator had flagged the trading website operated by “Binance Limited Nigeria.” However, Binance distanced itself from this entity, issuing a cease-and-desist notice to the perceived impersonator.
Aside from Nigeria, other nations where Binance is currently facing significant regulatory hurdles include Germany, Australia, France, Belgium, Austria, and, most notably, the United States.
On June 6, the US Securities and Exchange Commission filed a lawsuit against the exchange, accusing it of operating an unregistered trading platform and allegedly misrepresenting trading controls, among other charges.