The Nigerian government is pressuring Binance to disclose the identities of its top 100 users within the country amid an ongoing assault on the exchange while also seeking a $10 billion fine from Binance.
The Financial Times reported on March 13 that Nigerian authorities requested Binance disclose their transaction history for the previous half-year, in addition to information regarding the platform’s top 100 users.
The report also states that the office of Nigeria’s national security adviser has requested Binance to settle any unpaid tax obligations.
Nigeria, which asserted that Binance significantly impacted the local currency, the Nigerian naira, is negotiating the request.
The presidential adviser on information and strategy, Bayo Onanuga, argued that Binance and other cryptocurrency platforms caused a steep depreciation of the local fiat currency, the naira, through manipulation. The official further proposed the prohibition of platforms such as Binance within the nation.
Local authorities apprehended two high-ranking Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, due to the company’s endeavors to engage in dialogue with Nigerian authorities. Even though Binance delisted all naira transactions and ceased peer-to-peer naira transactions in late February, the executives remain in detention.
Gambaryan and Anjarwalla, according to Onanuga, were reportedly cooperating with Nigerian authorities and supplying “a wealth of information.” Additionally, he speculated that Nigeria might pursue a $10 billion punishment in retaliation because they “hugely disrupted” the Nigerian economy.
“Let us provide space and time for law enforcement agencies to carry out their duties. “Transferring results to the public is imminent,” stated the national security adviser’s office.
Binance declined to comment on the substance of allegations made by Nigerian authorities against the exchange. Additionally, a Binance representative informed Cointelegraph that the exchange did not withdraw from Nigeria but eliminated all naira trading pairs and transactions.
However, some online users doubted Binance’s capacity to assist Nigerian customers in such a predicament. One commenter on X argued, “If a company discontinues NGN [naira]-related services, it signifies that they have completely distanced themselves from Nigeria and all matters about Nigeria.”
In recent years, Nigeria has emerged as one of the world’s crypto economies with the most rapid growth. In 2023, it will also rank as the second-largest economy globally regarding cryptocurrency adoption. Google search volume for “cryptocurrency” and “buy crypto” ranked Nigeria as the most crypto-obsessed nation globally in August 2022.
The Financial Times reports that in June 2023, Nigeria disengaged from its prolonged currency peg and permitted unrestricted naira trade. Record-breaking inflation ensued in the nation as a result. The National Bureau of Statistics reports that in January 2024, consumer inflation in Nigeria increased to nearly 30%, marking the thirteenth consecutive month of growth.
