The current crackdown on cryptocurrency by the Nigerian government including its targeting of Binance has prompted experts and investors in the field to voice out their lack of confidence in investing in the West African country.
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 the West African country.
The crackdown which began a few months after the Central Bank lifted an indirect ban on Crypto was perceived by Crypto firms and investors as a regressive step for Nigeria.
The Nigerian government 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 its local currency has blamed crypto exchanges like Binance for currency manipulation. The faceoff led to Binance pulling its services from Nigeria and the Nigerian government instructing Nigerian telecoms 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, Co-founder and CEO of Valr, One of Africa’s top crypto exchanges explained that the action taken against Binance extends beyond affecting the confidence of Crypto investors
While many in the African cryptocurrency space share the frustration of Valr CEO, 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.
Leona Hioki, the cofounder of the Ethereum Layer 2 Platform, Intmax is one of such voices citing how the company invested in Nigeria despite the news of the crackdown on Binance.
Hioki just like the CEO of Valr acknowledged that indeed Nigeria has enormous potential for cryptocurrency and crypto firms and investors need to work with the Nigerian government to find a middle ground that is not too extreme for smooth operations.
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