The conflict between the Nigerian government and Binance continues, according to the Financial Times. The Nigerian government has also requested that Binance provide the personal information of the country’s top 100 users, as well as all transaction records from the past six months.
Since taking office in May last year, Nigerian President Bola Tinubu has abolished the fixed exchange rate system and allowed the country’s currency, the Naira, to depreciate significantly in an attempt to attract foreign investment and revive the economy.
However, this has led many people to turn to cryptocurrency exchanges to trade at unofficial Naira prices, amidst the Naira’s significant depreciation and inflation rates reaching a nearly 30-year high.
This has greatly displeased the Nigerian government, leading to the banning of major exchanges such as Binance, Coinbase, and Kraken in February, and accusing Binance of “manipulating exchange rates.” Two Binance executives have been detained by the Nigerian government for nearly three weeks.
According to the latest report from the Financial Times, the Nigerian government is pressuring Binance to provide information on the top 100 users in the country and all transaction records from the past six months, while also demanding that the exchange resolve any outstanding tax payments.
The two detained Binance executives are Nadeem Anjarwalla, the regional manager of Binance Africa, and Tigran Gambaryan, a former special investigator for the Internal Revenue Service (IRS) who was responsible for Binance’s financial crime compliance department.
According to insiders, the two individuals are currently being held at a hotel near the National Security Adviser’s office, with their phones and passports confiscated. Binance only managed to contact them on the 5th day, which was one week after their detention, and they have not been charged with any crimes.
Based on a court order, the court has approved the Economic and Financial Crimes Commission’s request to detain the Binance executives for 14 days, with the detention period ending on Tuesday of this week, and a detention extension hearing scheduled for Wednesday of this week.
Nigeria plans to demand compensation from Binance
Olayemi Cardoso, a special adviser to the Governor of the Central Bank of Nigeria, stated last month that the Nigerian government is demanding compensation from Binance to offset economic losses. He pointed out that Binance manipulating the Nigerian exchange rate is an illegal act, and that the central bank is the only institution authorized to set exchange rates in the country.
Related reports:
Nigeria bans cryptocurrency exchanges Binance, Coinbase, and others: Attempt to manipulate the Naira exchange rate and exploit illegal money laundering loopholes
Nigerian banks to introduce compliant “cNGN” stablecoin, to be recognized as legal tender by 2024
Nigerian SEC: Binance operates illegally and should immediately cease user promotion!