In the last 5 years, Nigeria has become a growing center for the adoption of cryptocurrencies, the tech-minded youth in the country have come to adopt digital currencies as a way to empower and increase their financial stability. However, this increasing cryptocurrency popularity has recently been disturbed by a regulatory conflict involving one of the biggest and most well-known cryptocurrency exchanges in the world, "Binance" leaving the Nigerian youths in the crossfire as authorities criticize cryptocurrency trading platforms.
Nigeria's Crypto Spread
Nigeria has a huge number of high rate of smartphone users who are surfing the net for financial opportunities and independence in a nation with unstable economies and depreciating currency value. These reasons all contribute to the country's youth and young adults' obsession with cryptocurrencies. With the help of cryptocurrencies, people can invest in digital assets directly from the source, conduct secure and fast transactions, and obtain financial services in place of using traditional banking systems. Not until the 5th of February, 2021, when the Central Bank of Nigeria (CBN), gave out a policy against Binance, and other exchanges that frowned against the use of local banks for crypto-related transactions. There was even a time when we had to use a VPN to access the Binance app.
Little did they know that all these would pave the way to the popularity of the exchanger in the country.
Many young Nigerians see cryptocurrency as a means of achieving financial independence in an environment where wealth growth is structurally restricted and job opportunities are few. They were not just going to let the government take that away from them at least not without them/us putting up a fight.
The Crypto Giant Was At The Receiving End In The Latest Policy/Saga
Binance, a worldwide recognized cryptocurrency exchange that has achieved a lot of recognition because of its user-friendly interface, various trading pairs, and competitive trading costs in P2P, is at the center of the Nigerian cryptocurrency ecosystem. Because Binance gave Nigerians access to a variety of digital assets and trading pairs options that had not been accessible through traditional financial institutions, the company's entry into the country's market served as a catalyst for a rise in the use of cryptocurrencies. Especially the swiftness in receiving money from friends and family in a different country without the use of any other platform that will incur a lot of charges.
Regulators such as the CBN, SEC, and EFCC, however, have taken notice of Binance's quick growth in Nigeria and expressed worries about the possible risks of cryptocurrency trading, including money laundering, financing of terrorism, and investor protection devaluation of the local currency, etc. Nigerian authorities have been monitoring Binance in response to increasing regulatory pressure, which has resulted in a number of legal disputes and operational obstacles that threaten to disrupt the country's crypto ecosystem.
Youths Anger Towards The Government
Many young Nigerians are frustrated and worried about the future of digital banking in their nation due to the government's unclear position on cryptocurrencies. While some government representatives have praised blockchain technology and its ability to boast economic expansion, others have demanded stricter laws to reduce the hazards connected to cryptocurrency trading.
Nigeria's cryptocurrency ecosystem has been negatively impacted by this regulatory uncertainty, with many young investors and entrepreneurs fearing the repercussions of the ongoing government interference in the digital asset market. Particularly, the recent crackdown on Binance has rocked the industry, raising questions about possible employment losses because if they eventually drop a law about the abolishment of cryptocurrency in the country, a lot of offer people will loss their jobs especially exchanges based within the country.
The youths' hopes and means of upkeep have been severely damaged by the unsure activities around Binance in the nation since we have dedicated our time, resources, and effort to creating communities and enterprises centered around cryptocurrency. A lot of us are currently worried about the possibility of needing to locate different trading and investment platforms, manage tricky regulatory requirements, or run the danger of falling behind in a sector that is changing quickly. Personally on the day of this recent incident where Binance closed the P2P section for NGN, I lost around $250 crypto deal because I was still trying out other exchanges and didn't want to risk people's money.
Effects on Self-Empowerment
Beyond the realm of digital assets, Nigeria's crypto story has long term effects on the country's economy and society. Nigeria runs the risk of missing out on the potential advantages of bitcoin adoption, such as job creation, innovation, and foreign investment, as young people in the nation face increasing obstacles in gaining access to financial services and engaging in the global digital economy.
Binance Final Decision On The Nigeria Policy.
As of yesterday, Binance finally came out with a memo stating that they are delisting NGN trading activities from their platform. This was as a result of the fact that the government having called for a representative from the exchange detained them when they didn't accept their terms and according to the media, the government placed a fine of $10billion on the exchange.
On seeing this, I went to my status to air out my anger and frustration only for me to come on discord to see this topic.
To me, I am grateful for the fact that they didn't immediately shut down accounts of everyone associated to Nigeria because it would have been a big time disaster and a lot of people would be left crying. But leave it to Nigerians to find alternatives to get by our daily routine. As we try to adapt to other exchanges, I believe with perseverance, we will surely overcome this challenges.
My Advice To The Government.
Nigeria can bank on the revolutionary potential of blockchain technology to drive the economic growth of the country, empower its youth, and develop a more robust financial system this will also cultivate an atmosphere of cooperation, transparency, and trust.
All we need at the moment is someone who is well educated in these things to advice and draft out ideas for the agencies in charge thereby causing the economy to strive but NO, they'd rather keep on getting richer and leaving the masses to suffer and eat from their remains than to empower it's citizens.
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