Nigeria Feels Impact of Actions Against Binance Executives: Investors Withdraw, Partnerships at Risk

Nigeria Feels Ripple Effects of Binance Executives’ Troubles

Nigeria is currently feeling the repercussions of actions taken against Binance executives, with investors pulling out from deals and partnerships, particularly in the internet3 sector. Lucky Uwakwe, the chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN), highlighted Nigeria’s perceived lack of basic security for businesses and the hostility from the federal government as reasons for concern.

In an interview with Cointelegraph, Uwakwe, who heads Nigeria’s inter-network working group involving Blockchain Nigeria User Group (BNUG), Cryptography Development Initiative of Nigeria (CDIN), and Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), expressed the worries of investors. According to Uwakwe, investors are anxious about potential repercussions related to Binance’s situation when investing in local Internet3 companies, leading to a gradual divestment from previously invested ventures.

Binance executives Tigran Gambaryan and Nadeem Anjarwalla visited Nigeria in February following allegations that the exchange manipulated the country’s fiat currency, the naira. After a meeting with the Nigerian government over Binance’s regulatory issues, the executives were detained and faced charges of money laundering.

Uwakwe stated that the government’s response to the Binance case is negatively impacting the entire country. By pursuing fines against Binance, the government is essentially undermining the entire sector, sacrificing potential growth for short-term gains.

When asked about the possibility of the current trial resulting in an acquittal for the Binance executives, Uwakwe expressed skepticism, believing that the chances are heavily in favor of the government. He emphasized that even if the executives are acquitted by the court, there is a strong possibility that the Nigerian government may disregard the ruling, as seen in previous cases perceived to threaten the country’s stability.

The Nigerian crypto community has faced criticism for not actively advocating for the release of the Binance executives. Uwakwe suggested that if Binance had engaged with relevant associations earlier, they could have garnered support from pressure groups and lobbying efforts.

Nigeria has had a history of tensions with cryptocurrency exchanges, with Binance halting operations using the naira in March following government criticism in February. Despite this, Nigeria was named the most crypto-obsessed country in the world in August 2022, based on Google searches for “cryptocurrency” or “buy crypto.”

As the situation unfolds, the implications of the actions against Binance executives continue to reverberate throughout Nigeria’s blockchain and internet3 sectors, raising concerns about the country’s regulatory environment and the future of investments in the industry.