Nigerian authorities have detained two senior executives of Binance, a prominent cryptocurrency exchange platform. This crackdown comes amidst heightened concerns over the rapid devaluation of the Nigerian currency and its impact on inflation, which recently soared to nearly three-decade highs at 29.9 percent.
The detained executives reportedly flew to Nigeria following the country’s recent ban on several cryptocurrency trading websites. Upon their arrival, they were apprehended by the office of the national security adviser, with their passports seized. While Binance declined to comment on the situation, authorities in Nigeria have intensified their scrutiny of cryptocurrency platforms in response to concerns about illicit financial flows.
Central Bank Governor Olayemi Cardoso raised alarm over suspicious financial activities involving crypto exchanges during a press conference, citing $26 billion in transactions passing through Binance Nigeria over the past year from unidentified sources. Nigerian authorities, including the anti-corruption agency and police, are now coordinating an investigation into cryptocurrency exchanges, demanding detailed user information from Binance.
The crackdown extends beyond the detention of executives, as last week, Nigeria’s telecoms regulator instructed telecoms companies to block access to major cryptocurrency exchanges like Binance, Coinbase, and Kraken. The move reflects President Bola Tinubu’s government’s efforts to attract foreign investment and stabilize the country’s struggling economy through market-friendly reforms.
Amidst the crackdown, Bayo Onanuga, a special adviser to President Tinubu, criticized Binance for allegedly manipulating Nigeria’s exchange rate and usurping the central bank’s role. For Binance, this development poses challenges amid ongoing efforts to reform its internal culture following legal troubles in the United States. The company recently faced hefty penalties and saw its former CEO, Changpeng Zhao, resign over money laundering and sanctions violations.
With Nigeria escalating its crackdown on cryptocurrency exchanges, the situation underscores the complexities of regulating digital currencies in emerging markets and the broader implications for global crypto markets.
