Nigerian Court Orders Binance to Provide Information on Nigerian Traders
A Nigerian court has issued an interim order requiring Binance, a cryptocurrency exchange, to provide detailed information about all Nigerian traders on its platform to the Economic and Financial Crimes Commission (EFCC). The order was issued following a motion filed by the EFCC lawyer under the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering Prevention and Prohibition Act, 2022. The court’s decision comes after allegations of nefarious activities and market manipulation by traders on Binance.
Investigation into Binance’s Activities
The EFCC’s Special Investigation Team launched an investigation into Binance after receiving intelligence about suspicious activities on the platform. The team discovered that traders were engaging in activities such as price discovery, confirmation, and market manipulation, which caused distortions in the market and devaluation of the Naira against other currencies. To further its investigation, the EFCC requested Binance to provide data related to Nigerian traders on its platform.
Prior Requests and Allegations
Earlier this month, Nigerian authorities asked Binance to disclose information about its top 100 users in Nigeria as well as its complete transaction history over the past six months. In addition, authorities are considering imposing a $10 billion fine on Binance for allegedly facilitating unlawful transactions that negatively impacted the local economy.
Detention of Binance Employees
As a result of the ongoing dispute between the Nigerian government and Binance, two employees of the cryptocurrency exchange are currently detained in Nigeria. They will remain in custody until March 20 according to a court ruling. The arrests occurred after the government accused Binance of causing the devaluation of the Naira. In response, Binance removed the Naira from its peer-to-peer (P2P) service.
Stricter Regulatory Measures
This week, Nigeria’s Securities and Exchange Commission proposed changes to the regulatory framework for platforms offering cryptocurrency services. These changes include a significant increase in registration fees for exchanges, indicating a stricter approach to regulating the crypto sector in Nigeria.
Hot Take: Binance Ordered to Release Nigerian Traders’ Data
The Nigerian court’s order for Binance to provide information on Nigerian traders reflects the government’s efforts to investigate and address alleged nefarious activities and market manipulation in the cryptocurrency sector. By requiring Binance to disclose data related to Nigerian traders, the Economic and Financial Crimes Commission aims to gather evidence and further its investigation into these matters. This development also comes amidst ongoing tensions between Binance and the Nigerian government, as two Binance employees remain detained. Nigeria’s proposed regulatory changes suggest a stricter approach to overseeing cryptocurrency exchanges in the country.
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