Nigeria’s Crypto Investors Urge Government to Follow India's Approach in Tackling Binance Dispute: Report

The Central Bank of Nigeria in February accused Binance of facilitating $26 billion (roughly Rs. 2,18,287 crore) worth of untraceable transactions.

Written by Radhika Parashar, Edited by David Delima | Updated: 22 August 2024 17:00 IST

Nigeria’s Crypto Investors Urge Government to Follow India's Approach in Tackling Binance Dispute: Report

Photo Credit: Pixabay/ Sergei Tokmakov

This week, Binance CEO Richard Teng has asked Nigeria to release its executive in custody

Highlights

Binance services remain suspended in Nigeria
The next hearing in the Nigerian court is scheduled for October 11
Nigerian crypto traders have called for regulatory clarity

Crypto traders in Nigeria have reportedly urged the government to take a measured approach in tackling regulatory issues with crypto firms like Binance. As part of their suggestions to the Nigerian authorities, crypto investors in the country have asked the government to follow India's approach. In recent months, Binance's business in Nigeria came to a halt after it was accused by the government for not screening suspicious transactions related to money laundering and for not having a physical presence in the country to address customer grievances.

Mark Nduagibe, a crypto trader from Nigeria was recently in Lagos to attend an event where he reportedly interacted with the media and discussed the situation at length.

He noted that the government and people of Nigeria need to understand that cryptocurrencies are genuine trading tools and that the country must take steps to become an early adopter of this technology. For that to happen, Nduagibe said, the regulators need to take steps to bring more legal clarity for crypto businesses to adhere to and offer safe services to the citizens.

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Taking about the Binance situation in Nigeria, the trader said, while Nigeria is embroiled in a court battle with the exchange after imprisoning two of its executives, India dealt with a similar situation by taking a measured approach to the issue.

“We all can see how India maturely handled the issue with Binance over alleged operating as a reported entity without registration by imposing a $2.25 million fine. That marks a significant milestone in crypto regulation. That is what Nigeria should do instead of allowing the Exchange's executive to languish in jail,” Nduagibe was quoted as saying.

Earlier this month, India restored access to Binance in the country, after the exchange paid a fine for violating the Prevention of Money Laundering Act, 2002 (PMLA). In addition, Binance secured its 19th global operating licence in India.

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“India, by comparison, did not resort to arresting employees or using extreme measures to force compliance. Instead, it chose to hold Binance accountable through financial penalties and enforce stringent regulatory standards, all while allowing the company to continue operating,” another Nigerian crypto trader told CryptoPolitan.

Binance's Legal Issues in Nigeria

In February, the Central Bank of Nigeria accused Binance of facilitating untraceable transactions worth $26 billion (roughly Rs. 2,18,287 crore), as per a blog. Later, Binance decided to suspend all services in Nigeria. Binance, in its blog, also claimed that the allegations against the firm resulted in a ban in the country. Over 1,000 bank accounts related to peer-to-peer trading via Binance were also frozen around the same time that executives from the firm were detained.

This week, Binance CEO Richard Teng asked Nigeria to release its executive in custody for medical supervision. The court date for Binance in Nigeria is now set for October 11, Reuters has reported. Binance users in Nigeria are worried about facing financial losses amid the exchange's tensed situation with the authorities.

In July, another crypto exchange OKX also reportedly decided to exit Nigeria over regulatory concerns.

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Further reading: Cryptocurrency, Nigeria, Crypto, Binance

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More