Is The Operation Of Binance In Nigeria Illegal?
Centralized crypto exchanges are going through a hard time due to regulatory crackdowns. The Nigerian Securities and Exchange Commission (SEC) has announced that the operation of the leading crypto exchange Binance is illegal in the country.
Binance Nigeria Limited, a subsidiary of Binance, is not registered or regulated by the SEC. Still, it is active and promoting its web and mobile-enabled platform to the people in Nigeria which is a violation of Nigerian laws.
The SEC of Nigeria warns people about investing in cryptocurrency and emphasizes its extreme risk. People can lose their investment capital that is allocated to crypto assets. Many people in Nigeria use crypto exchange Binance and it is very popular over there.
Despite the current challenging situation, people use P2P to get involved in crypto and make their investments. The centralized authority tries to shift people's focus from cryptocurrency and introduced Central Bank Digital Currency, the e-Naira.
In spite of all efforts and regulations, they fail to make the e-Naira attractive to the people. Only 0.5% of Nigerians use Central Bank Digital Currency, the e-Naira. The U.S. SEC filed a lawsuit against the most popular crypto exchange Binance. Probably the Nigerian SEC thinks this is the right to clear its stance against Binance.
Investors do not just throw their hard-earned money into crypto and gamble with that. They are aware of the risk associated with crypto. They do their work, analyze the investment opportunity, its risk, and return, and then make investment decisions.
The regulatory crackdown forces crypto businesses to make tough decisions. They do not want to leave any market or limit their operations in certain areas. Sometimes you may not execute what you plan to do because of challenging situations. You will adapt and use any opportunity to your advantage.
Regulators can make crypto-friendly regulations instead of working against crypto businesses and making it difficult to survive. Will the centralized authority be successful to stop people from using crypto? They can stop people temporarily or make it more difficult to get involved in cryptocurrency. But things will change.
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Reference: 1.
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I think that all this has a background, something is being sought, banks continue to accumulate and accumulate cryptocurrencies, they must somehow put up a smoke screen to divert attention
The central authority will not let the crypto move forward easily. They want to hold their power and monopoly over the financial system.
It's sad to see but the eNaira was a failure for them. I think they are just trying to salvage things by following what the US did. If they remove the alternatives, then they have a better chance of getting people to adapt their own CBDC.
Looks like they just don't accept that eNaira was a failure. I am wondering how long the central authority will be able to hold its power forcing people to accept something that they don't like.