Nigeria Works with Binance to Create Digital Economic Zone
Nigeria works with Binance to create a digital economic zone focusing on crypto and blockchain-related businesses. It will be the first economic free zone for cryptocurrencies in West Africa.
In order to benefit from the virtual economy in blockchains and the digital economy, the Nigerian government plans to create this digital economic zone. It will be established through the Nigeria Export Processing Zones Authority (NEPZA).
Nigeria and the world’s largest exchange Binance are working together as well as talking with Talent City, a company that specializes in creating special economic zones. To strengthen the securities industry in the nation, the exchange has entered into a contract with SERC, Cambodia's securities and exchange regulator.
To promote further the acceptance of cryptocurrencies and blockchain technology in the African nation, Binance also recently opened a crypto education hub there. In an effort to create the nation's "Virtual Free Zone," NEPZA held early conversations with Binance and the digital infrastructure company Talent City, according to a press statement on Saturday. Adesoji Adesugba, the managing director of NEPZA, Nadeem Ladki, the executive director of business development and strategic partnerships for Binance, and Luqman Edu, the CEO of Talent City, met on Friday to discuss the early plans. It aims to offer tax breaks and regulations that are friendly to the cryptocurrency industry.
Adesugba went on to say that the virtual free zone would "enlarge economic chances" for those living in the country of western Africa. The change occurred after the Bahamas launched a central bank digital currency (CBDC) in October of 2021, making Nigeria the second nation in the world to do so. Since its launch, the eNaira has been utilized in transactions totaling more than 4 billion naira (almost US$9.5 million). The Nigerian central bank attempted to outlaw the usage of cryptocurrencies by the general public prior to the launch of eNaira by ordering banks to freeze the accounts of suspected cryptocurrency traders.
The Nigerian government has maintained an adversarial relationship with the business despite the country's citizens' significant adoption of cryptocurrencies. All commercial banks in the nation were instructed by the Central Bank of Nigeria to stop supporting cryptocurrency transactions. Cryptocurrencies pose a threat to the nation's broader financial economy, according to the apex bank. The SEC claims that the rules are designed to safeguard investors and promote market transparency. Nigerians continue to adopt cryptocurrency despite the ambiguous governmental approach to the sector.
Nigeria's Security and Exchange Commission stated in a new rulebook published in May of this year that all crypto assets are securities. The guidelines generally imply that Nigeria, a nation of tech-savvy individuals, is seeking to provide clarity to the booming crypto sector.
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