Binance Suspends Application for Nigerian Licence Due to Jailed Executive, Litigations
Licence Requirement Conditions For Binance: Release Jailed Executive, Discontinue Lawsuits
The cryptocurrency exchange giant Binance wants conditions to be licensed under the regulation of Nigeria’s Securities and Exchange Commission for Virtual Asset Service Providers. It wants its head of financial crime compliance, Tigran Gambaryan, who is reported to be in jail, released, and wants ongoing court cases with the Nigerian government discontinued.
The Arrest and Detention of Tigran Gambaryan
For the reasons, Gambaryan is a top executive responsible for Binance’s financial crime compliance and has been detained during one of his visits to Nigeria. He has accused of money laundering and continues in Kuje prison with serious health problems, including pneumonia and a herniated disk. Medical suggestions have come that he undergoes surgery, but his appeals for proper medical care have reportedly been denied.
Legal Tussles Between Binance and Nigerian Authorities
Apart from the release of Gambaryan, Binance is trying to solve all the legal problems that have been haunting it with the Nigerian government, which accuses the crypto company of tax evasion and foreign exchange violations. The Nigerian regulators said Binance was able to make more than $20 billion in revenue inside the country during 2023 with no payment of tax due. Binance has denied such allegations and has remained in talks with the government for some time now.
Nigerian SEC’s Regulatory Drive and Binance’s Resistance
These include the Sec approving two local exchanges, Quidax and Busha, under its Accelerated Regulatory Incubation Programme. However, Binance has remained reluctant, pointing to the hurriedly put-together framework and pending litigations as its major objections.
Crypto Adoption in Nigeria
However, notwithstanding a few regulatory uncertainties, Binance has remained one of the most sought-after platforms among users in Nigeria. Over 22 million active users are into cryptocurrency trading. A decision by the exchange to decline registration will have wide ramifications on efforts by the Crypto Market SEC to bring the crypto market into federal oversight and delay the implementation of a solid regulatory framework.
This, again, speaks to the complexity of crypto regulation in emerging markets, where high adoption rates run up against regulatory and legal challenges. Indeed, Binance’s positioning with regard to licensing and compliance will set a certain precedent for other global crypto exchanges operating in similar environments.
