Binance Reveals Extensive Cooperation with Nigerian Agencies Amid Current Crypto Turmoil
Summary:
Cryptocurrency exchange Binance has outlined its prior cooperation with Nigerian officials following troubles in the country. Binance hosted two workshops on blockchain finance tracing for Economic and Financial Crimes Commission officials in August 2023, and responded to 626 inquiries from enforcement agencies between June 2020 and February 2024. These revelations come in response to the Nigerian government's allegations of economic infringement and potential nationwide ban on all crypto exchanges. Binance's relationship with Nigeria has soured, leading to the arrest of two executives and the discontinuation of Nigerian naira trading pairs on the platform.
Binance, a leading cryptocurrency exchange, has publicly detailed its substantial collaborations with Nigerian officials, following recent upheaval around its business dealings in the nation. The exchange indicated that its once stable standing with governing bodies had taken a turbulent turn recently. Just a few months prior in August 2023, Binance had held extensive workshops with representatives from the Economic and Financial Crimes Commission (EFCC) in Lagos and Abuja. These workshops, focusing on blockchain financial tracking using public and commercial technologies, were enthusiastically embraced by over 30 investigators in attendance.
This kind of cooperation reached a point where Binance responded to 626 inquiries for information from local enforcement bodies within an average turnaround time of slightly over 37 hours, from June 2020 to February 2024. These information requests supported ongoing enquiries of institutions such as the Nigeria Police Force, EFCC, and INTERPOL Nigeria.
Binance's detailed response comes in the wake of allegations from the Nigerian government, accusing the company of economic infringement such as manipulation of the national currency, the Nigerian naira (NGN). This led to calls for a nationwide ban on all crypto exchanges.
The nation's central bank, Central Bank of Nigeria (CBN), also voiced concerns about potentially dubious financial transactions carried out through the crypto exchange, estimating untraceable transactions to the tune of $26 billion in 2023. The ensuing scrutiny led to a dramatic shift in Binance's relationship with the Nigerian government, resulting in the detention of two high-ranking company executives on February 26. Alongside the legal action, Binance has also discontinued all NGN trading pairings on its peer-to-peer trading platform.
Despite the downturn in relations, Nigeria maintains a strong position as a burgeoning crypto economy, securing the second spot internationally in terms of crypto adoption as of 2023. However, investor confidence took a hit last year due to economic unrest that devalued the national currency, the naira, largely. In June 2023 alone, Reuters reported a 36% dip in the naira's value after President Bola Tinubu lifted trading restrictions and suspended the nation's central bank governor, Godwin Emefiele.
Published At
3/13/2024 7:37:13 PM
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