The Nigerian government has reportedly intensified its crackdown on Binance, a major cryptocurrency exchange, by demanding information on its top 100 users in the country and their transaction history. The move comes amidst allegations that Binance manipulated the local currency, the Nigerian naira, leading to a significant decline. Let’s delve deeper into the situation and its implications.
According to a report by the Financial Times, Nigerian authorities have requested Binance to provide data on its top 100 users and their transaction history for the past six months. Additionally, the office of Nigeria’s national security adviser has urged Binance to address any outstanding tax liabilities. These demands are part of ongoing negotiations between Binance and Nigerian authorities.
Bayo Onanuga, the presidential adviser on information and strategy, has accused Binance and other crypto platforms of manipulating the Nigerian naira, resulting in a substantial decline in the local fiat currency. Onanuga even suggested banning platforms like Binance in the country. In response to Binance’s attempts to engage in dialogue with Nigerian authorities, two senior Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained by local prosecutors.
Despite Binance’s removal of all naira trading pairs and peer-to-peer transactions in late February, the detained executives remain under custody. Onanuga indicated that Gambaryan and Anjarwalla are cooperating with Nigerian authorities and providing valuable information. However, Nigerian officials may seek significant fines against Binance due to the perceived economic impact on the country.
Binance declined to comment on the specific allegations made by Nigerian authorities but clarified that it did not exit Nigeria entirely. Instead, the exchange removed naira trading pairs and transactions. However, some online users raised doubts about Binance’s ability to continue serving Nigerian users under such circumstances.
Nigeria has emerged as one of the fastest-growing crypto economies globally, with significant adoption and interest in cryptocurrencies. However, the country’s decision to abandon its currency peg and allow the naira to trade freely in June 2023 led to record-high inflation rates, exacerbating economic challenges.
The intensified crackdown on Binance by Nigerian authorities reflects broader concerns about the impact of cryptocurrencies on local economies. As the situation unfolds, stakeholders in the crypto industry and Nigerian authorities will continue to navigate regulatory challenges and seek solutions to address concerns related to crypto trading and its impact on national currencies.
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