By Chinenye Anuforo
The crackdown on cryptocurrency by the federal government including its targeting of Binance has prompted experts and investors to express their lack of confidence in investing in Nigeria.
According to Bitcoin News , the crackdown on Binance and other crypto platforms have led crypto firms to reconsider their plans to either enter or further invest in Nigeria. The crackdown which began a few months after the Central Bank of Nigeria (CBN) lifted the ban on crypto was perceived by crypto firms and investors as a regressive step for Nigeria.
The FG recently detained two Binance executives accusing the crypto exchange of tax evasion. Although Binance has shown willingness to work with the Nigerian government, it has vehemently refused to release names of top Nigerian users. The Nigerian government battling with the free fall of the Naira, has blamed crypto exchanges like Binance for currency manipulation and the face-off led to Binance pulling its services from Nigeria, while the government instructed telcos to block access to crypto exchanges in the country.
While the Naira seems to have improved after the crackdown crypto, experts and investors say the entire episode has left a bitter taste in their mouths as regards investing in the country.
Farzam Ehsani who is the co-founder of Valr and one of Africa’s top crypto exchanges explained that the action taken against Binance extends beyond affecting the confidence of crypto investors
“As of today, some Binance executives in Nigeria have been charged with what seems to be spurious allegations which is very worrying and has ramifications far beyond the crypto industry. What has transpired calls into question the very fundamental rule of law that is required for any society to function effectively,” Ehsani asserted.
While many in the African cryptocurrency space share the frustration of Ehsani, some dissenting voices have argued in favour of the Nigerian government saying that the country just wants to strike a balance between innovation and regulation.
The co-founder of Intmax, Leona Hioki, is one of such voices citing how the company invested in Nigeria despite the news of the crackdown on Binance.
“Some friends even advised us against going at such a time, especially since we arrived in Nigeria just two weeks after the news about Binance broke. However, we recognise that the Nigerian government is actively working to strike a balance between innovation and regulation,” the Intmax CEO said.