The office of the Nigerian National Security Adviser (NSA) has reportedly detained two Binance executives sent to the country to discuss with the government regarding cryptocurrency crackdown in the country.
In an attempt to curb naira speculation by clamping down on cryptocurrency exchanges, two senior officials of Binance have been arrested in the country by the Nigerian government.
Nigeria clamps down on Binance
Following Nigeria’s move to ban several cryptocurrency trading platforms, the Binance executives flew to the country to meet with the authorities. However, according to persons with knowledge of the situation, they were arrested by the national security adviser’s office and had their passports confiscated. A request for a response from an adviser to the office has not been answered. Binance did not respond to a request for comment.
Following the swift depreciation of the naira, which contributed to inflation reaching a nearly three-decade high of 29.9%, Nigerian authorities have shifted their attention to websites selling cryptocurrencies.
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The websites have become a viable option for trading and setting the informal value of the Nigerian Naira. Binance stopped trading the naira against bitcoin and tether digital currencies on its exchange after the executives were arrested.
Several users have reported on X (formerly Twitter) that p2p vendors are no longer available on the platform even though the exchange app still functions in the country.
Recall that earlier this week, the Nigerian Central Bank governor Olayemi Cardoso called out Binance in a press conference while talking about cash flows through several cryptocurrency exchanges.
He claimed that certain illicit flows of funds are going through cryptocurrency exchanges. He said that in 2023 alone, $26 billion has passed through Binance Nigeria from unidentifiable sources and users.
Cardoso pointed out that Nigeria’s national security adviser, police, and anti-corruption agency were coordinating an inquiry into bitcoin exchanges. According to a person with knowledge of the situation, the authorities have been requesting to see a list of Binance’s Nigerian users ever since the company launched.
This comes as a huge blow to the Binance exchange as it has been struggling with regulators across several countries. A special adviser to Bola Tinubu, the President of Nigeria, Bayo Onanuga accused Binance of hijacking the country’s central bank’s role and manipulating the exchange rate.
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.