A Nigerian court has mandated the cryptocurrency exchange Binance to surrender detailed information on its Nigerian users. This enforcement is a sign of Nigeria’s increasing scrutiny and regulatory measures over cryptocurrency operations. The demand originates from the Economic and Financial Crimes Commission (EFCC), which is seeking data on individuals who trade on Binance’s platform.
Nigeria’s Legal Pursuit of Binance
The court’s decision to grant the EFCC’s request comes after Binance officials were invited and arrested in Nigeria. This legal action, now entering its fourth week, signals a growing clampdown on crypto activities in the country. The interim order also extends to requiring transaction histories of Nigeria’s top 100 Binance users over the past six months.
Intensified Regulatory Oversight
Judge Emeka Nwite has made a statement emphasizing the gravity of the court’s order, directing Binance to comply fully. This move highlights Nigeria’s serious stance on monitoring cryptocurrency transactions, especially in the wake of allegations that these activities have contributed to illegal capital flight and a significant depreciation of the Nigerian naira.
Continued Detention of Binance Executives
In addition to the data request, Nigerian authorities have held two senior Binance executives in custody, with a court hearing pending. The country’s regulators are also contemplating a drastic hike in registration fees for crypto firms by 400% and are seeking a hefty $10 billion in penalties from Binance for its alleged role in facilitating untraceable financial activities worth $26 billion.
The situation presents a challenging phase for Binance in Nigeria, as the industry anticipates the crypto exchange’s response to the court’s stringent demands.