Nigeria is grappling with the repercussions of actions taken against Binance executives, with investors withdrawing from deals and partnerships, particularly in the web3 sector. Lucky Uwakwe, chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN), highlighted Nigeria’s perceived lack of business safety and government hostility, citing the Binance case as evidence.
Uwakwe expressed investors’ worries about potential repercussions similar to Binance’s fate when investing in local Web3 companies. He noted that already invested parties are gradually divesting due to uncertainties surrounding regulatory actions.
Binance executives Tigran Gambaryan and Nadeem Anjarwalla faced detention and charges of money laundering after claims that the exchange manipulated Nigeria’s fiat currency, the naira. Uwakwe criticized the government’s approach, stating that pursuing fines against Binance undermines the entire industry’s growth prospects.
Uwakwe expressed skepticism about the Binance executives’ chances of acquittal, believing the government holds the upper hand in the trial. He highlighted the government’s tendency to disregard court rulings perceived to threaten national stability, even in the event of an acquittal.
Addressing potential questions from the international community, Uwakwe suggested that earlier engagement with relevant associations could have garnered support for Binance from pressure groups and lobbying efforts.
Nigeria has a history of discord with cryptocurrency exchanges, with Binance ceasing naira operations in March 2022 following government criticism. Despite being labeled the most crypto-obsessed country by Google searches, Nigeria’s regulatory landscape remains uncertain.
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