In an official communication dated March 13 the government of Nigeria has taken decisive action to probe the operation of the Binance. In the ongoing investigation, the Nigerian authority demanded the Binance team to provide details, including names and transaction history of 100 active local investors.
The demand to disclose the personal details of 100 Binance users came days after the government ordered the regulatory agencies to probe the operations of the controversial crypto exchange.
Nigeria Ban Operation of Binance
A few weeks ago, the Nigerian law enforcers arrested two of Binance’s top executives, Tigran Gambaryan and Nadeem Anjarwalla. The arrest of the two executives demonstrated the commitment of the Nigerian government to promoting compliance in the crypto sector.
In an interview with the Nigerian presidential adviser, Bayo Onanuga argued that the regulatory action against Binance aimed at stabilizing Naira. Mr Onanuga regretted that the Naira has registered poor performance for the past few months.
He explained that the increase in demand for crypto assets adversely affected Naira’s performance. The decrease in the value of the local currency forced the Nigerian authorities to implement restrictive measures on some crypto exchanges.
In his statement, the presidential adviser condemned the Nigerian for being unpatriotic. He urged the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to take immediate action and suspend the operations of Binance. Onanuga challenged the Nigerian authority to restrict exchanges attempting to manipulate the Naira.
Also, the official encouraged the West African government to ban crypto assets entirely to address the devaluation of the local currency. Citing the regulatory action taken by other countries, Onanunga stated that Binance should not be used to determine Naira’s value.
Factors Contributing to the Devaluation of Naira
The ban on Binance in Nigeria created mixed reactions among the crypto community. Some of the Binance users complained they couldn’t access the crypto exchange. Following the ban, the presidential adviser demanded that the Binance team resolve the outstanding tax balances with the Nigerian authority.
In an earlier interview, the Nigerian government expressed concern over using crypto to complement the local currency. The authority argued that despite the benefits offered by crypto assets, Binance had threatened the traditional financial market.
Speaking exclusively with the Financial Times, a representative from Binance argued that it was inappropriate to comment on the substance of the allegation about the ongoing investigation in Nigeria.
The official confessed that the Binance team will prioritize on the release of the arrested officials. The legal charges facing Binance in Nigeria mirror the regulatory action taken by global regulators to navigate the harsh economic conditions.
Crypto Adoption in Nigeria
With the recent development in the crypto sector, the Nigerian authority has been seeking to regulate crypto without interfering with innovation and tech development. Reportedly, the unexpected regulatory move attracted the interest of market critics who underlined the need to regulate the crypto sector.
However, the speculators argued that the political lightning rod on Binance would not address Nigeria’s economic condition. They urged the government to consider developing a practical approach that will foster financial stability and growth.
Elsewhere, a renowned crypto investor, Ozioma Okechukwu, expressed concerns about the ban on Binance operations in Nigeria. He argued that delisting the Nigerian currency on Binance created fear among crypto enthusiasts.
Ozioma admitted that despite multiple crypto exchanges in Nigeria, Binance has emerged as the most used platform. The troubled investor blamed the Nigerian government for enforcing a restrictive approach on Binance.
He regretted that regulatory action on Binance was a big blow to the entire crypto sector. The ban on Binance came when Nigeria ranked among the countries with the highest crypto adoption in sub-Saharan Africa.
According to a recent study on Google, Nigeria was labeled as a crypto-obsessed country globally. The exciting crypto adoption has enabled the government to curb the biting inflation affecting developing countries.
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