According to Uwakwe, the head of Nigeria’s crypto intercommunity working group, investors worry about potential repercussions similar to Binance’s fate when investing in local Web3 companies.
Nigeria is feeling the consequences of actions against Binance executives, with investors withdrawing from deals and partnerships, particularly in the web3 sector. They mention Nigeria’s perceived lack of safety for business and government hostility, citing the Binance case as evidence, according to Lucky Uwakwe, the chairman of Nigeria's Blockchain Industry Coordinating Committee .
In an interview with Cointelegraph, Uwakwe, head of Nigeria’s intercommunity working group involving Blockchain Nigeria User Group , Cryptography Development Initiative of Nigeria , and Stakeholders in Blockchain Technology Association of Nigeria , expressed investors’ concerns. According to Uwakwe, investors worry about potential repercussions similar to Binance’s fate when investing in local Web3 companies. He pointed out that already invested parties are gradually divesting.Uwakwe stated that the government’s approach to the Binance issue is adversely impacting the entire nation. By pursuing fines against Binance, the government is essentially undermining the entire industry, sacrificing potential growth for short-term measures.
When asked about the possibility of the current trial resulting in an acquittal for the Binance executives, Uwakwe expressed skepticism. He believes the executives face slim chances of acquittal unless certain conditions are met internally by the company, according to the government’s perspective. He said,Uwakwe emphasized that even in the event of the Binance executive’s acquittal by the judge, there’s a strong possibility that the Nigerian government may disregard the court ruling.