Nigeria and Binance to create a blockchain-focused free zone

Nigerian authorities and the cryptocurrency exchange Binance are in talks to establish a free digital economic zone that will help entrepreneurs accelerate the adoption of blockchain technologies in the region. Bloomberg reports.

The partnership is aimed at creating a digital hub, “analogous to the Dubai Virtual Free Zone”, according to a statement from the Nigerian Export Processing Zone Authority.

The authorities aim to diversify the economy by reducing its dependence on crude oil extraction through digital technologies. The driver of innovation is expected to be a young and active population.

In February 2021, the Nigerian central bank prohibited commercial financial institutions from providing services to cryptocurrency exchanges and companies dealing in digital assets.

Subsequently, the Senate proposed that the central bank regulate the sector rather than restricting it.

In May 2022, SEC Nigeria’s classified cryptocurrencies as securities.

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