As it tries to get its head above water after the legal setbacks which cost a lot of money, the crypto exchange Binance is facing new regulatory challenges. This time, the problems come from Nigeria where the authorities criticize the potential influence of the platform on the country’s economy, causing concern among local traders.
The call for regulatory measures against the crypto exchange Binance
Binance’s regulatory problems in Nigeria are far from being resolved favorably. Indeed, the crypto company is under scrutiny due to the threats it poses to the stability of the country’s economy.
During a recent intervention on the question, Bayo Onanuga, the presidential spokesperson, stressed the urgent need for regulatory measures to address the situation. More particularly to Binance’s control over exchange rates.
According to Onanuga, this is what Binance achieves by setting exchange rates in a way that he considers arbitrary. A practice which, from his point of view, directly challenges the authority of the Central Bank of Nigeria (CBN) and sabotages the state economy.
The official further discouraged the use of the parallel market for exchange rates. He advocates scrupulous compliance with the CBN official rate to stabilize the economy and alleviate inflationary pressures.
The context of the Nigerian economy
Fundamentally, these accusations against the Binance crypto exchange fit into a very specific economic context. That of a major economic crisis characterized by galloping inflation, challenges on the foreign exchange market, the removal of fuel subsidies.
All this contributes to a collapse of the naira, the local currency. A situation which obliges the Nigerian authorities to seek ways and means to achieve some control over the prevailing economic instability.
Under these circumstances, regulators are intensifying their monitoring of crypto firms like Binance in order to stem illicit financial activities. This, while Olayemi Cardoso, the governor of the CBN speaks of shady transactions.
The latter, valued at approximately $26 billion, were allegedly facilitated by Binance from unidentified sources. A concern which prompted the opening of an investigation, still ongoing, by anti-corruption agencies. As the debate over Binance and crypto regulation continues, Nigeria’s approach could influence global discussions on digital finance governance.
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