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Nigeria has stepped up its scrutiny of global crypto exchange Binance by demanding the names and transaction history for the top 100 Nigerian users, according to a news report.
It's been three weeks now that the Nigerian government has detained two of Binance's senior executives. The government's actions underscore its intention to stabilize the naira, Nigeria's currency, which has been under significant pressure following recent devaluations.
According to documents seen by the Financial Times, the office of Nigeria’s national security adviser is also asking the exchange to resolve any outstanding tax liabilities.
President Bola Tinubu's administration has said the rise of cryptocurrency platforms like Binance has presented a challenge, offering alternative exchange rates for the naira and fueling speculation.
Nadeem Anjarwalla and Tigran Gambaryan, key figures in Binance's African operations, remain detained without charges in Abuja, the Nigerian capital. Their detention, considered by some as a tactic to pressure Binance into compliance, has raised diplomatic tensions with the United Kingdom and the United States, the executives' home countries.
“While it is inappropriate for us to comment on the substance of the claims at this time, we can say that we are working collaboratively with Nigerian authorities to bring Nadeem and Tigran back home to their families,” Binance told FT in a statement.
The situation highlights the complex dynamics at play as Nigeria navigates its economic challenges, seeking to regulate the cryptocurrency sector without stifling innovation or alienating international partners. Critics argue that while regulation is necessary, the focus on Binance might not address the broader economic issues facing Nigeria, suggesting a more nuanced approach is required to ensure stability and growth.
A crypto trader, Ozioma Okechukwu, told local news outlet The PUNCH that Binance delisting the naira from its exchange has made him worry about what might happen on other exchanges.
“I am aware of other crypto exchange platforms operating in Nigeria but many of us have been used to Binance," he said. "No matter how you look at it, it is a big blow to the market."