According to reports, Binance is under pressure from the Nigerian government to disclose information about its top 100 clients in the country, amid an intensifying attack on the exchange. Nigerian authorities have requested that Binance submit its transaction history for the last six months, as well as details on the top 100 users of the platform, according to a Financial Times piece published on March 13.
The article also mentions that Binance has been asked to settle any unpaid tax obligations by the office of Nigeria’s national security adviser. The request is a result of discussions between Nigeria and Binance, where Nigeria claimed that Exchange had a significant influence on the naira, the country’s currency.
Presidential advisor on information and strategy Bayo Onanuga claimed that Binance and other cryptocurrency platforms have manipulated the naira, causing a sharp drop in the value of the country’s fiat currency. The official recommended prohibiting websites such as Exchange within the nation.
Tigran Gambaryan and Nadeem Anjarwalla, two senior Binance officials, were detained by the local prosecutors in reaction to Binance’s attempt to establish communication with Nigerian authorities. Even after Exchange delisted all naira transactions and terminated peer-to-peer naira transactions in late February, the executives are still being held.
Nigeria Pressures Binance Amid Allegations
According to Onanuga, Gambaryan and Anjarwalla are providing copious amounts of information and collaborating with Nigerian authorities. Additionally, he said that Nigeria might wish to pay them $10 billion because they had seriously damaged the country’s economy.
The office of the National Security Adviser stated: “Let’s provide law enforcement organizations the time and room they need to execute their jobs. We’ll update you on the outcome later. Regarding the allegations made by the Nigerian government, Exchange remained silent.
According to a Binance representative, the company did not entirely withdraw from Nigeria. Rather, they made it impossible for users to exchange naira on their platform. Online, some people are curious as to whether Binance can still assist users in Nigeria. According to one person, a corporation is seen to have given up on Nigeria if it ceases offering services relating to Nigerian money.
Nigeria is now among the nations with the fastest-growing cryptocurrency markets in recent years. In 2023, it ranks second in terms of cryptocurrency usage. According to Google searches, Nigeria was the nation most interested in cryptocurrencies in August 2022.
According to the Financial Times, Nigeria released its currency from pegged to another in June 2023 and allowed it to trade freely. The nation experienced extremely high inflation after that. The National Bureau of Statistics reports that for the thirteenth consecutive month in January 2024, inflation was close to 30%.