The Nigerian government has sharpened its approach against the cryptocurrency exchange, Binance, by demanding a comprehensive report on transactions by the country’s most frequent 100 users over the past half-year. This inquiry spearheaded by the national security advisor also probes Binance’s adherence to tax liabilities.
Heightened Scrutiny and Allegations
In a previous development, there was speculation about Nigeria possibly imposing a substantial $10 billion penalty on Binance for benefiting from transactions deemed illicit under Nigerian law. The financial exchange is also under scrutiny due to allegations by a local news outlet which implicated Binance Nigeria in enabling an unlawful monetary flow estimated at $26 billion last year, the origins of which remain undisclosed.
The exchange’s role in the perceived devaluation of Nigeria’s currency, the naira, has further strained relations, leading Binance to cease support for the naira on its platform. This included the delisting of all Nigerian naira trading pairs, among other measures taken this month.
Detainment of Key Personnel Highlights Dispute
The conflict gained international attention following the detainment of two high-ranking Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, by Nigerian authorities since late February. Despite their situation, a Binance representative confirmed their collaboration with local officials to facilitate the return of the detained executives to their families.
This ongoing standoff is illustrative of the broader challenges faced by international cryptocurrency platforms as they navigate regulatory compliance and government oversight in certain countries. This incident emphasizes the increasing regulatory efforts by governments, including Turkey’s, to establish control over the digital currency domain.