As Binance faces ongoing regulatory challenges in Nigeria, the world’s largest cryptocurrency exchange has launched its One Click Buy and Sell (OCBS) service in several African nations, including Ghana, Tanzania, Uganda, and Zambia.
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Introduced last week, this new feature allows users to purchase and sell cryptocurrencies directly via their mobile money accounts without needing internet access. Binance stated that the initiative is designed to promote financial inclusion and simplify access to digital assets across Africa.
Binance’s expansion into these markets comes at a time when the company is grappling with significant obstacles in Nigeria, where it has encountered disputes with authorities over allegations of tax evasion. In February 2024, Binance suspended its peer-to-peer trading services in Nigeria, signaling a strategic shift in the region.
Commenting on the situation, Obinna Iwuno, President of the Blockchain Technology Association of Nigeria, acknowledged that Binance’s experience in Nigeria has been less than favorable, making it challenging for the company to introduce new services. He pointed out that countries with clear regulatory frameworks are more likely to benefit from the rapid advancements in blockchain and Web3 technologies.
“Clear regulations give businesses the confidence to innovate, operate, and roll out new products,” Iwuno remarked.
Given the recent suspension of some services and the ongoing friction with the Nigerian government, Iwuno expressed doubt about Binance introducing new features in the country anytime soon.
“I’m not sure if Binance has any active representatives in Nigeria right now. Typically, when launching new features, it’s crucial to educate the public, especially in a major market like Nigeria,” Iwuno explained.
He also highlighted the potential impact of Binance’s OCBS service on financial inclusion, particularly in regions where mobile money is a critical financial tool for the unbanked and underbanked, as it does not require internet access.
“The launch of OCBS in these African countries will significantly enhance financial inclusion. Nigeria cannot afford to lag behind in this regard,” Iwuno added, stressing the missed opportunity for Nigeria to leverage such technologies.
In March, Nigerian authorities charged Binance with tax evasion and detained two executives, Nadeem Anjarwalla and Tigran Gambaryan. Although Anjarwalla fled the country in March, a June court ruling eventually cleared both executives of the charges. However, the government has yet to release Gambaryan from custody, adding further uncertainty to Binance’s operations in Nigeria. Meanwhile, Binance continues to expand its presence in other African markets, excluding Nigeria.
