Binance is still facing increased regulatory pressure as the Federal Government of Nigeria is urged to forbid Binance's operations within the country by the Association of Bureau De Change Operators of Nigeria (ABCON).

Bureaux de Change (BDC) that have been granted central bank licenses are all covered by ABCON, a self-regulatory organization.

The association reportedly recognized Binance as a significant contributor to the pressure on the naira, prompting this response.

In an interview conducted on August 8 in Lagos, Alhaji Aminu Gwadabe, president of ABCON, offered this advice, according to Nairametrics, a local news organization.

According to reports, Gwadabe emphasized that Binance trading has grown to become a focal point for both the Investor and Exporters window and the parallel market, pointing out that the platform records exceptional liquidity, with 1.2 million transactions taking place every second.

He said this presents a competitive challenge, the answer to which is to forbid Binance, and the only way to do this is by increasing liquidity.

According to the report, the president of ABCON noticed a shift in the tone of the market for foreign exchange in Nigeria from one of optimism to pessimism.

Gwadabe emphasized that the market's predominance of pessimism has the potential to erode public confidence, a key factor affecting currencies around the world.

On July 28, the Nigerian Securities and Exchange Commission (SEC) issued a warning to local investors about using the cryptocurrency exchange Binance.

This advisory made reference to an earlier circular that had been released in response to the actions of a dishonest entity that was improperly using the Binance brand. Binance responded by sending Binance Nigeria a cease and desist letter.

The regulatory body emphasized that the platform's operations are illegal and reaffirmed that it does not have the necessary permission to operate in the nation.

Nigeria has embraced a watchful stance toward the cryptocurrency industry while also promoting its central bank digital currency (CBDC).

In order to improve contactless payments, it upgraded the CBDC system with near-field communication technology in July.

Sources:

https://cointelegraph.com/news/binance-nigeria-faces-calls-for-ban-by-nigerian-bureau-de-change-association

https://nairametrics.com/2023/08/09/bdc-operators-ask-fg-to-ban-binance-operations-in-nigeria-to-strengthen-the-naira/

https://sec.gov.ng/circular-on-the-activities-of-binance-nigeria-limited/