Despite Clampdowns On Cryptocurrency Usage, African P2P Users On Binance Grow By Over 2000%
African P2P users on Binance grow by over 2000%
Binance, the world's largest cryptocurrency exchange platform, has reported an increase in the number of African users on its platform. This is despite several governments across the continent attempting to restrict the use of cryptocurrencies.
It saw a 2228.21 percent increase in P2P users and a 386.93 percent increase in P2P volume across Africa.
As previously reported, the Nigerian Central Bank (CBN) issued a circular in February prohibiting banks and financial institutions from facilitating payments for cryptocurrency exchanges. This continued a trend of governments worldwide opposing the use of cryptocurrencies, with US Federal Reserve Chairman Jerome Powell expressing reservations about the volatility of cryptocurrencies and their use in criminal activity.
Not only did the number of users on Binance grow. Between January and April 2021, the volume of crypto-crypto transactions increased by 28.61 percent.
Between January and April 2021, the platform saw a 114.33 percent increase in users across Africa. Binance's growth is consistent with a report by Nairametrics claiming that P2P bitcoin transactions increased in the aftermath of the CBN's ban.
Binance invested in Xend Finance, a Nigerian startup, to expand its presence in Africa
While Binance's operations in Africa appear to be expanding, the same cannot be said for its operations in the United States. The US Justice Department and Internal Revenue Service are investigating the startup. Federal authorities in the United States are investigating whether citizens of the country are using the platform's services to fund illicit activities and evade taxes.
Binance's growth over the last year demonstrates that Africans will continue to use cryptocurrencies. Rather than erecting impediments to users, this may be the time for governments across the continent to rally behind startups operating in the space.
