Nigeria demands Binance’s user details amid executives’ detainment and crypto clampdown

The Nigerian government is stepping up its scrutiny of Binance, one of the world’s largest cryptocurrency exchanges, by demanding information about the platform’s top 100 users in the country. This development comes in the wake of the alleged detention of two Binance executives in Nigeria, believed to be linked to the role the company played in the depreciation of the local currency, the naira.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has claimed that transactions totaling approximately $26 billion have been executed through the cryptocurrency platform by anonymous individuals.

Beyond requesting the identity of Binance’s top 100 users in Nigeria, the government is making inquiries into their transaction history on the platform for the past six months. According to reports from the Financial Times, this demand has become a cornerstone of the ongoing negotiations between Binance and the Nigerian government.

The government is particularly interested in these users’ transaction records from the past six months, as this period coincides with the start of the diminishing value of the naira. The insights derived from this investigation could potentially shed light on the interplay between cryptocurrency transactions and the national currency’s decline.

Alongside the request for user data, the Office of Nigeria’s National Security Adviser is further pressing Binance to settle any outstanding tax liabilities.

This is happening concurrently with the detention of two Binance executives, identified as Tigran Gambaryan, a former crypto-focused US federal agent who now leads Binance’s Criminal Investigation team, and Nadeem Anjarwalla, Binance’s Regional Manager for Africa.

According to a report by Wired, these executives have reportedly been held against their will for over two weeks, with their passports confiscated by Nigerian authorities.

While there has been no official statement from Binance regarding the detention of these executives, their families have outwardly expressed their dissatisfaction with the situation. They are particularly vexed, considering that the individuals in question have not been charged with any criminal offences.

Reportedly, the Nigerian government had invited these executives for discussions, coinciding with plans to block access to the Binance website and other cryptocurrency platforms in the country.

Following their initial meeting with the government, the detained Binance executives were reportedly taken to a guesthouse run by the Office of Nigeria’s National Security Adviser. As of now, it remains unclear when they will be released or what specific developments have occurred in the ongoing negotiations between Binance and the Nigerian government.

Ever since the news surfaced that Nigeria plans to restrict access to crypto websites through telecommunication companies, crypto platforms in the country have either halted peer-to-peer transactions or discontinued offering stablecoins such as USDT and USDC to their users.

Interestingly, despite numerous crypto stakeholders arguing that Binance has not contributed to Nigeria’s currency issues, the naira has gained strength against the US dollar in recent times. Currently, it trades at ₦1,595 per dollar, compared to ₦1,800 prior to the governmental clampdown on cryptocurrency websites.

However, the Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has expressed its concerns over these governmental actions. It warns that such stringent measures might drive activities related to cryptocurrencies and other virtual assets underground, potentially fostering an unregulated and opaque environment.

As of the latest reports, the websites of numerous cryptocurrency platforms continue to be inaccessible via major mobile networks in Nigeria, including MTN and Airtel. This situation reflects the ongoing regulatory measures taken by the country’s government aimed at controlling crypto-related activities.