In efforts to spur crypto and blockchain adoption globally, Binance once again forms another partnership with NEPZA and Talent City from Nigeria where the three firms will be developing a Virtual Free Zone.
On 2nd September 2022, NEPZA from Nigeria held meetings with the Changpeng Zhao-led crypto exchange, Binance, and Talent City in an effort to broaden the country’s economy.
The three are in the union to develop a digital economic zone dubbed Virtual Free Zone. In this digital economic zone, all Nigerian crypto and blockchain-related businesses will have an opportunity to thrive.
The Nigeria Export Processing Zones Authority (NEPZA) released a post outlining the partnership’s plans.
West Africa’s first digital economic zone
Considering Nigeria’s high rate of crypto adoption, the country homes over 22 million crypto owners. A recent survey also revealed that Nigerian citizens are the most obsessed with cryptocurrencies in Africa.
Mr. Adesoji Adesugba, Managing Director and CEO at NEPZA noted the project would effectively help in crypto adoption in West Africa. More so because the country’s economic development agenda will integrate the Virtual Free Zone.
“We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority, the directive of the Honourable Minister and the economic development agenda of President Muhammadu Buhari,” Adesugba noted.
During a meeting held on 2nd September 2022, Adesugba and his team members from the two firms discussed the plans for the early stage of the project. Adesugba urged that the digital economic zone would spur Nigeria’s digital economy and will also help create employment opportunities.
“Our goal is to engender a flourishing virtual free zone to take advantage of a near trillion dollar virtual economy in blockchains and digital economy,” he added.
The Nigerian Virtual Free Zone will emulate Dubai’s virtual zones. Where crypto-friendly laws, regulations and tax incentives for crypto-related businesses are top notches.
Binance spurs crypto adoption
The collaboration with Nigeria’s NEPZA and Talent City represents recent moves Binance has made an effort to boost crypto and blockchain adoption. Just a few weeks ago Binance partnered with South Korea’s city of Busan. The two signed an MoU where Binance agreed to provide the city with technological and infrastructural backing.
Binance had also earlier partnered with the Security and Exchange Regulators of Cambodia (SERC) in efforts to support the country’s securities sector. In addition to all these, recently in Cameroon, Africa, Binance established a crypto education hub. The main goal of the partnership is to further drive crypto and blockchain adoption within the country.
Nigerian government against cryptocurrencies
Despite the government’s disapproval of crypto involvement, Nigeria stands as one of the highest crypto adoption countries in Africa. As of March 2022, Nigeria had a P2P volume of $400 million on the Paxful and Localbitcoins platforms
The Central Bank of Nigeria initially banned all commercial banks in the country from executing crypto transactions. The bank believes that cryptocurrencies pose a threat to the broader financial economy within the country.
However, the Nigerian SEC published a rulebook in May 2022. The rulebook provides protection and market transparency to crypto investors within Nigeria.
