Top-level executives from Binance Nigeria found in Kenya, local blockchain advocacy group expresses doubts about their ability to escape legal consequences.

Review Binance Nigeria Regulatory Incident: Binance Shakes 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 Nigeria (BNUG), Cryptographic Development Initiative of Nigeria (CDIN), Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), and the Blockchain Industry Coordination Committee of Nigeria (BICCoN) recently admitted to Cointelegraph that investors are concerned about the Web3 business environment due to the frequent regulatory incidents.

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 might lead to 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.

Previously reported, despite the small market size in Central and South Africa, cryptocurrencies have penetrated the daily lives of many people; Nigeria ranks second globally in the adoption of cryptocurrencies, demonstrating the local enthusiasm for digital currencies.

(Chainalysis: Inflation Pressure Accelerates the Adoption of Cryptocurrencies in Central and South Africa)