Nigeria’s Binance crackdown threatens Web3 industry

According to Uwakwe, the head of Nigeria’s crypto intercommunity working group, investors worry about potential repercussions similar to Binance’s fate when investing in local Web3 companies.

Nigeria Binance Crackdown Threatens Web3 Industry

Nigeria is feeling the consequences of actions against Binance executives, with investors withdrawing from deals and partnerships, particularly in the web3 sector. They mention Nigeria’s perceived lack of safety for business and government hostility, citing the Binance case as evidence, according to Lucky Uwakwe, the chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN).

In an interview with AZC.News, Uwakwe, head of Nigeria’s intercommunity working group involving Blockchain Nigeria User Group (BNUG), Cryptography Development Initiative of Nigeria (CDIN), and Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), expressed investors’ concerns.

According to Uwakwe, investors worry about potential repercussions similar to Binance’s fate when investing in local Web3 companies. He pointed out that already invested parties are gradually divesting.

Binance executives Tigran Gambaryan and Nadeem Anjarwalla came to Nigeria in February following claims that the exchange manipulated the country’s fiat currency, the naira. The executives were detained and slammed with five counts bordering on money laundering after a meeting with the Nigerian government over Binance’s regulatory woes.

Binance (1)

Uwakwe stated that the government’s approach to the Binance issue is adversely impacting the entire nation. By pursuing fines against Binance, the government is essentially undermining the entire industry, sacrificing potential growth for short-term measures.

When asked about the possibility of the current trial resulting in an acquittal for the Binance executives, Uwakwe expressed skepticism. He believes the executives face slim chances of acquittal unless certain conditions are met internally by the company, according to the government’s perspective. He said,

“The chances are probably 90-10, 90 for the government,10 for the Binance executives in question…”

Uwakwe emphasized that even in the event of the Binance executive’s acquittal by the judge, there’s a strong possibility that the Nigerian government may disregard the court ruling. This pattern has been observed before, especially in cases perceived to threaten the country’s stability.

Related: Escalation of Tensions Between Nigeria and Binance

Uwakwe addressed a potential question from the international community about why the Nigerian crypto community isn’t vigorously advocating for the release of the Binance executives. He suggested that if Binance had engaged relevant associations earlier, they would have garnered support from pressure groups and lobbying efforts.

The Nigerian government has often been at odds with cryptocurrency exchanges. Binance ceased operations using the naira on March 8 after Nigerian government criticism of crypto exchanges singled it out in February.

In August 2022, Nigeria was named the most crypto-obsessed country in the world by the number of Google searches for “cryptocurrency” or “buy crypto.”

(11 votes)

4.8/5

(11 votes)
  1. Avatar of
    Anonymous

    Visit jfk uum ibg

  2. Avatar of CryptoSucker
    CryptoSucker

    I’m a Nigerian, and seriously speaking, I don’t like this. I mean youths are trying to tap into this emerging technology… Nigeria being the most crypto-obsessed is not far-fetched. We, Nigerians, love crypto and whatever we put our minds into…. forget it… we’re taking over it.

  3. Avatar of AZC.News
    AZC.News

    Nigeria is a country with a high cryptocurrency adoption index. Hope everything will be good

  4. Avatar of
    Anonymous

    It’s only binance…other exchangers are active, binance is only manipulating the exchange rate of our currency

  5. Avatar of
    Anonymous

    The writer, Lucky Uwakwe, the chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN).

    Is not putting his judgement right he is bias because the government can’t sit back comfortably seen a platform like Binance rubbing her economy for selfish gain.

    Its this same government that lifted the ban on cryptocurrency based on their understanding on its potentials.

Comments are closed.

Latest

Crypto Market Faces Volatility Ahead Of Trump Tariff Pause Expiration

News | Editor Choice | Policy & Regulations

Crypto Market Faces Volatility Ahead of Trump Tariff Pause Expiration

The crypto market is entering a sensitive phase as the Trump tariff pause nears its end and nearly $15 billion in Bitcoin options are set to expire, putting significant pressure on investor sentiment.

Pi Coin Faces Selling Pressure Ahead Of Pi2day

News | Editor Choice | Pi Network

Pi Coin Faces Selling Pressure Ahead of Pi2Day

Ahead of the Pi2Day event on June 28, Pi Coin is under strong selling pressure while Pi Network announces a series of new updates, including the KYC Sync feature and upgrades to the Pi Browser aimed at improving user experience and accelerating the transition to Mainnet.

Bitcoin Could Drop To $100,000 Soon

Bitcoin | Editor Choice

Bitcoin Could Drop to $100,000 Soon

Although Bitcoin has surged following the stabilization of the Middle East situation, it could still fall below the 100,000 USD mark in the near future.

Coinbase Stock Hits New High As Analysts Split On Future Rally

News | Altcoin | Editor Choice | Policy & Regulations

Coinbase Stock Hits New High as Analysts Split on Future Rally

Coinbase (COIN), the crypto exchange giant, has just set a new all-time closing high, despite growing concerns that the stock may be due for a short-term correction.

Ai Crypto App Users Double This Year

Editor Choice | Altcoin

AI Crypto App Users Double This Year

According to a report from DappRadar, there are approximately 4.5 million wallets using AI applications on the blockchain, marking an 86% increase this year.