Nigeria Demands Transaction Records from Binance
The Nigerian government is pressuring Binance, one of the largest cryptocurrency exchanges, to disclose information about its top 100 users in the country. This request is part of Nigeria’s ongoing efforts to strengthen its national currency, the naira, and combat what it perceives as manipulation by cryptocurrency platforms.
- The Nigerian government has demanded that Binance provide transaction records for the past six months.
- The office of Nigeria’s national security adviser has also emphasized the need for Binance to address any outstanding tax obligations.
- Bayo Onanuga, the presidential adviser on information and strategy, has accused Binance and other cryptocurrency platforms of significantly devaluing the naira.
- Onanuga has proposed banning platforms like Binance from operating within Nigeria.
In response to Binance’s attempts to engage in dialogue with Nigerian authorities, two senior executives have been detained by local prosecutors. Despite Binance’s decision to delist all naira transactions and halt peer-to-peer naira transactions in late February, the executives remain in custody.
- Tigran Gambaryan and Nadeem Anjarwalla are reportedly cooperating with Nigerian authorities and providing substantial information.
- There is a possibility that they could face a $10 billion fine for allegedly causing severe economic repercussions.
Binance has expressed its commitment to promoting responsible crypto growth in Nigeria and assisting its detained employees and their families.
Binance’s Cooperation with Nigerian Authorities
Binance has been actively working with Nigerian law enforcement agencies to foster responsible growth in the country’s crypto industry. The exchange’s financial crime compliance (FCC) teams have responded to 626 information requests related to Nigeria-focused investigations between June 2020 and February 2024, with an average response time of 37.4 hours.
Nigeria’s Efforts to Stabilize the Naira
The detention of Binance executives is part of Nigeria’s broader efforts to stabilize its national currency and address currency speculation facilitated by crypto exchanges. The Nigerian government has previously directed telecom and internet service providers to limit access to several crypto exchanges, including Binance, Coinbase, and Kraken, in order to combat currency depreciation.
- Nigeria has emerged as one of the world’s fastest-growing crypto economies in recent years.
- In 2023, Nigeria ranked as the second-largest country in terms of crypto adoption.
- It was also recognized as the most crypto-enthusiastic country globally based on Google search volume related to cryptocurrency.
Hot Take: Nigeria’s Battle Against Crypto Platforms
Nigeria’s demand for transaction records from Binance and its efforts to stabilize the naira highlight the government’s concerns about the impact of cryptocurrency platforms on its national currency. While Nigeria has seen significant growth in its crypto economy, the government is taking steps to regulate and control this sector. It remains to be seen how these actions will shape the future of cryptocurrencies in Nigeria and whether other countries will follow suit.
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