Nigeria’s global reputation in cryptocurrency is in potential jeopardy due to recent government crackdowns on local exchanges. Nonetheless, Oladotun Wilfred Akangbe, Chief Marketing Officer of Flincap crypto exchange, believes the country can weather this storm.
In an interview with Cointelegraph, Akangbe expressed concerns about Nigeria’s image in the international crypto market following these events. However, he noted that Nigeria has overcome more severe setbacks in the past.
In February, the Nigerian government prevented local crypto users from accessing the websites of various crypto exchanges like Binance, OctaFX and others using the country’s telecommunication providers.
Authorities then accused Binance of moving $26 billion out of the country illegally, and invited Binance to send employees to discuss the issue.
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Binance executives Tigran Gambaryan and Nadeem Anjarwalla visited Nigeria in February in response to allegations that the exchange manipulated the country’s fiat currency, the naira.
But they were detained and charged with five counts related to money laundering after meeting with Nigerian officials about Binance’s regulatory issues. Nadeem Anjarwalla subsequently escaped from custody and was tracked down to Kenya where he faces extradiot.
Akangbe pointed out that controversies in Nigeria’s crypto sector are to be expected given the country’s growing crypto usage. He emphasized Nigeria’s significant role as a cryptocurrency user and blockchain adopter worldwide. Despite the challenges, he remains optimistic about cryptocurrency’s future in the country.
“We can turn it around by projecting the fact that we are one of the biggest users of cryptocurrency and adopters of blockchain across the globe. It is normal to have a few controversies in a place where there is so much massive growth. The future remains bright for cryptocurrency in the country.”
Regarding the current sentiment in Nigeria regarding crypto, Akangbe noted a mix of enthusiasm and caution. While there is excitement about crypto’s potential, concerns linger about regulations, cryptocurrency volatility, and the risks of scams and fraud.
Akangbe clarified that the uncertainties are due to the back and forth between the Nigerian government and stakeholders in the crypto space. Local crypto analysts have expressed disappointment in the government’s unfriendly attitude toward crypto in resolving the nation’s foreign exchange challenge.
