Binance may be kicked out of Nigeria’s cryptocurrency market, fears and opportunities for new startups

By Crypto Gloom On Mar 10, 2024

Binance cryptocurrency exchange reportedly plans to scale back its cryptocurrency operations in Nigeria. Many local cryptocurrency stakeholders have claimed that new cryptocurrency exchanges will enter the market once this happens.

Binance is a leading cryptocurrency exchange primarily known for its highly secure and cryptocurrency trader-friendly services. The exchange’s services are available in several countries where cryptocurrency trading is legal under the existing laws of those jurisdictions. Just a week ago, Nigeria imposed URL access restrictions on several cryptocurrency exchanges, including Binance and Coinbase.

Following regulatory pressure from Nigeria’s enforcement agencies, Binance also terminated Naira, Nigeria’s sovereign currency, associated with all cryptocurrency services. This means that Nigerian cryptocurrency traders can only trade cryptocurrency assets using Binance.

Binance has suspended operations in Nigeria 😰… (FALSE ❌)

Binance is still operating smoothly in Nigeria 🇳🇬 and all features (crypto deposits, crypto withdrawals, trading spot, futures trading) are available except P2P and NGN/USDT trading (crypto assets are 💯 safe). It may be possible. pic.twitter.com/GMNtzFYW02

— TMC (@tempofundz) March 6, 2024

Following this hurdle on the Binance exchange, many local cryptocurrency stakeholders have shared their opinions on the situation and said that since Binance may leave Nigeria, a new cryptocurrency exchange will enter the Nigerian cryptocurrency market to fill the gap. .

According to the report, if Binance leaves Nigeria, unemployment in the country will also increase. Since market competition is very low, it is likely that the country’s youth will come up with new cryptocurrency startup ideas.

Nathaniel Luz, CEO of liquidity provider Flincap, said many Nigerians were using Binance P2P trading service, which was a better source of revenue for them, but they were now turning to WhatsApp and Telegram for P2P trading, which was not smooth sailing. Because without a middleman, fighting fraudsters is not easy.

More importantly, Flincap management drew attention to Binance’s exit as part of its new fears. According to him, this could create a lot of fear among Nigerian cryptocurrency traders and is likely to reduce the confidence of cryptocurrency investors and new cryptocurrency entrepreneurs in the sector.

Binance (BNB) Price Action

BNB is the native token of the Binance cryptocurrency exchange and backend development work is managed by an independent team.
The current trading price of BNB is $529 and it is up 63% in the last 30 days.