Nigeria is facing the consequences of its actions against Binance executives, as investors are now withdrawing from deals and partnerships in the web3 sector. The lack of safety for business and government hostility in Nigeria are being cited as reasons for this, with the Binance case serving as evidence. Lucky Uwakwe, the chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN), shared these concerns in an interview with Cointelegraph. Uwakwe, who heads Nigeria’s intercommunity working group involving Blockchain Nigeria User Group (BNUG), Cryptography Development Initiative of Nigeria (CDIN), and Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), highlighted the worries of investors who fear facing similar repercussions as Binance. He also mentioned that existing investors are gradually divesting from their investments.
In February, Binance executives Tigran Gambaryan and Nadeem Anjarwalla visited Nigeria amidst allegations that the exchange manipulated the country’s fiat currency, the naira. However, they were detained and charged with five counts of money laundering following a meeting with the Nigerian government to discuss Binance’s regulatory issues. Uwakwe believes that the government’s handling of the Binance case is negatively impacting the entire nation. He argues that by pursuing fines against Binance, the government is undermining the growth of the entire industry in favor of short-term measures.
When asked about the likelihood of the Binance executives being acquitted in the ongoing trial, Uwakwe expressed skepticism. He believes that unless certain conditions are met internally by the company, as perceived by the government, the executives face slim chances of acquittal. Uwakwe also emphasized that even if the executives are acquitted by the judge, there is a strong possibility that the Nigerian government may disregard the court ruling, especially in cases that are seen as threatening the country’s stability.
Uwakwe addressed a potential question from the international community regarding the lack of vigorous advocacy from the Nigerian crypto community for the release of the Binance executives. He suggested that if Binance had engaged with relevant associations earlier, they would have garnered support from pressure groups and lobbying efforts.
It is worth noting that the Nigerian government has had a tumultuous relationship with cryptocurrency exchanges. Binance, in particular, stopped operating with the naira on March 8, following criticism from the Nigerian government in February.
In August 2022, Nigeria was recognized as the most crypto-obsessed country in the world, based on the number of Google searches for “cryptocurrency” or “buy crypto.”
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