Nathaniel Luz, a local cryptocurrency shareholder, predicts that new cryptocurrency exchanges will emerge in Nigeria to fill the void left by Binance's withdrawal.

Local cryptocurrency stakeholders have expressed regret at the current prohibition on Binance naira operations in Nigeria, claiming that it will negatively impact many Nigerians' livelihoods and may lead to a rise in the country's youth unemployment rate.

Local cryptocurrency insiders told Cointelegraph in separate interviews that other exchanges will emerge to fill the void left by Binance's departure by adhering to local laws as a result of Binance delisting its Nigerian naira-related services.

The CEO of Flincap, a liquidity platform for cryptocurrency exchanges, Nathaniel Luz, stated that a number of Nigerian traders who earn a living through peer-to-peer trading on Binance are now impacted. Luz did note that some people are dealing on Telegram and WhatsApp groups, though.

Oladotun Wilfred Akangbe, the chief marketing officer of Flincap, claims that the decision to cease Binance operations and the ongoing ambiguity surrounding cryptocurrency regulation in Nigeria have the potential to erode the faith of many in the industry. He said that it might cause a great deal of anxiety, apprehension, and scepticism in Nigeria's cryptocurrency community.

Binance stated it would immediately convert naira funds to Tether USDT in an official announcement posted on its website. $1.00 tickers down beginning at 8:00 am UTC on March 8 and ending at 2:00 pm UTC on March 5 for naira deposits.

Since March 8 at 6:00 am, withdrawals have not been permitted. The exchange rate is 1 USDT for 1,515.13 naira. All naira trading pairs were removed from Binance's peer-to-peer platform at the end of February.

Citing "suspicious flows" of funds at Binance, the governor of the Central Bank of Nigeria stated on February 27 that cryptocurrency exchanges in Nigeria were suspected of handling illegal transactions.

The Nigerian House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng to testify before the committee by March 4 as concerns about Binance's purportedly illegal operations in Nigeria grew.

Nigeria's Securities and Exchange Commission declared in 2023 that Binance Nigeria's activities in the country were unlawful since it was neither registered nor governed by it. The Central Bank of Nigeria changed its position on cryptocurrency assets in December 2023 and advised banks to disregard the earlier prohibition on cryptocurrency transactions.