In a move to crack down on naira speculation and regulate cryptocurrency exchanges, Nigerian authorities have reportedly detained two senior executives at Binance, a leading crypto platform.
According to a report by the Financial Times (FT), the executives were arrested upon their arrival in Nigeria by the Office of the National Security Adviser. This action follows Nigeria’s recent ban on multiple crypto exchanges, including Binance.
While the names of the detained executives were not disclosed, sources familiar with the situation revealed that their passports were seized. Further, as reported by FT, the Nigerian authorities have also requested a list of Binance’s Nigerian users who joined the platform since its inception. However, it remains unclear if this request is part of negotiations to secure the release of the detained executives. So far, Binance has also not issued a statement regarding the matter.
It is pertinent to note that the Nigerian government’s scrutiny of cryptocurrency websites comes in response to the rapid devaluation of the naira, which has led to inflation reaching nearly 30%. Telecom and internet service providers were instructed to restrict access to various crypto exchanges, including Binance, Coinbase, and Kraken, in an effort to stabilize the national currency. Recently, during a recent press conference, Olayemi Cardoso, Nigeria’s central bank governor, expressed concerns about the substantial funds flowing through Binance Nigeria in 2023, amounting to $26 billion, from sources that the government “cannot adequately identify.”
Meanwhile, in February, Binance implemented a limit on the selling price of Tether (USDT) on its peer-to-peer platform in Nigeria. In a blog announcement addressed to Nigerian users, the exchange reiterated its commitment to collaborating with local authorities, lawmakers, and regulators to ensure compliance with regulations and address non-compliance issues
