The Nigerian government has escalated its crackdown on cryptocurrency exchanges like Binance, seeking extensive data and information about the platform’s activities within the country. According to reports, Nigerian authorities have demanded that Binance disclose details about its 100 largest users in Nigeria, along with a comprehensive record of all transactions made over the past six months.
This move comes amid heightened tensions, with two high-ranking Binance executives currently detained by Nigerian authorities. The detained individuals are Tigran Gambaryan, who heads the exchange’s investigations unit, and Nadeem Anjarwalla, Binance’s regional manager for Africa. They were apprehended after being summoned for discussions about Binance’s operations and the restrictions imposed on the exchange by the Nigerian government.
The detentions are part of a broader effort by Nigerian regulators to exert control over the cryptocurrency market, driven by concerns over potential tax evasion, currency manipulation, and illicit financial flows facilitated through unregulated crypto platforms. The Central Bank of Nigeria has accused Binance of operating illegally and enabling billions of dollars in unidentified transactions.
While no formal charges have been filed against the detained executives as of now, reports suggest they could potentially face accusations of currency manipulation, tax evasion, and illegal operations. Their families maintain that the detentions have occurred without any criminal charges being brought forth.
As the situation unfolds, Binance has suspended its services involving the Nigerian naira currency. The request for user data and transaction history marks a new phase in the negotiations between Binance, the largest cryptocurrency exchange, and Nigerian authorities representing one of Africa’s biggest crypto markets.
Nigerian lawmakers have also ramped up pressure, with threats of arrest warrants against Binance executives and summonses issued to the company’s CEO, Changpeng Zhao, seeking explanations regarding alleged involvement in money laundering and terror financing.
The Nigerian government, through its national security advisor, has demanded that Binance address any outstanding tax liabilities, further escalating the regulatory scrutiny on the crypto giant’s operations within the country.
