President of ABCON, a self-regulatory organization, Alhaji Aminu Gwadabe, said Binance was putting pressure on the Nigerian naira. He emphasized that Binance’s market dominance is growing, with 1.2 million transactions on the platform every second, and this poses a serious challenge to Nigeria’s financial and economic stability.. The most effective countermeasures may be to strengthen liquidity by limiting Binance’s influence, which is why Guadabé has called on the government to ban the exchange from operating in the country.
“We are concerned about the changing dynamics of the local currency market. Binance’s activities could undermine public confidence in the Nigerian naira, a critical factor on which the international reputation of any currency depends,” the ABCON president said.
Earlier, the Securities and Exchange Commission of Nigeria (SEC) had warned local citizens against Binance registration, recommending that they refrain from trading on the platform. The agency said that Binance’s ongoing operations in Nigeria are being conducted without legal authorization, in violation of applicable laws.
In June, Binance CEO Changpeng Zhao said his company has no affiliate relationship with Binance Nigeria. Last January, Binance blocked the accounts of more than 280 Nigerian citizens to comply with anti-money laundering regulations.