Binance Exits Nigeria Amid Crypto Crackdown to Offset Naira Fall
In a significant move, Binance, the world’s largest cryptocurrency exchange, has announced the cessation of operations involving Nigeria’s naira.
This decision follows the Nigerian government’s intensified efforts to regulate cryptocurrency exchanges amidst concerns over the depreciating value of the local currency, the naira.
Nigeria’s War on Cryptos
The crackdown spearheaded by Nigeria’s central bank is part of broader measures aimed at curtailing the naira’s decline against major currencies. Olayemi Cardoso, the Central Bank of Nigeria’s governor, has been vocal about the perceived risks associated with cryptocurrency exchanges, branding them as channels for money laundering and pointing to Binance as a prime example.
According to Cardoso, “In the last one year alone, $26 billion has passed through Binance Nigeria from sources and users who we cannot adequately identify,” suggesting a significant volume of transactions that could potentially be linked to illicit activities. These allegations come amidst admissions from Changpeng Zhao, Binance’s head, who has pleaded guilty to violating anti-money laundering laws in the United States.
