Reviewing Binance Nigeria Regulatory Event:
Binance Shaking the National Foundation? Nigeria Demands $10 Billion Compensation: Binance Causes 70% Depreciation of National Currency
However, the Nigerian government’s crackdown on Binance has affected the local Web3 industry, causing institutional and retail investors to withdraw their investments.
The Blockchain Users Group in Nigeria (BNUG), the Cryptography Development Initiative of Nigeria (CDIN), the Blockchain Technology Association of Nigeria (SiBAN), and the Blockchain Industry Coordinating Committee (BICCoN) recently confessed to Cointelegraph that investors are concerned about the Web3 business environment due to the frequent regulatory events.
Uwakwe, the chairman of BICCoN, pointed out that both institutional and retail investors are gradually withdrawing their investments. Investors are worried that investing in local Web3 companies may result in a situation similar to the current crisis faced by Binance.
Uwakwe believes that the government’s handling of the Binance issue has had a detrimental impact on the entire country, sacrificing potential long-term growth for short-term solutions.
Previous reports have shown that although the market size in Central and Southern Africa is relatively small, cryptocurrencies have penetrated into the daily lives of many people. Nigeria ranks second in the global cryptocurrency adoption index, demonstrating the local enthusiasm for cryptocurrencies.
(Chainalysis: Inflation Pressure Accelerating the Adoption of Cryptocurrencies in Central and Southern Africa)