Binance Faces Pressure from Nigeria to Provide Data on Top 100 Users

March 14, 2024

Nigeria is demanding that Binance hand over data on its top 100 users and all transaction records from the last six months as the dispute between the exchange and the country’s authorities escalates. Two senior Binance executives are still detained in Nigeria.

The Nigerian authorities are not only requesting user data from Binance, but also asking the company to settle its pending tax obligations. This has prompted debates within the country.

One individual said on Binance Square, a community platform where users can interact with each other and share information, that revealing any data would signify a breach of contract by Binance toward its users, as the exchange has agreed to keep users’ information private when they signed up on the platform.

Another user questioned why the Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, went to Nigeria, considering there are more than 500 exchanges already operating in the country. The user insinuated there may be an undisclosed reason for their travel. They further suggested the executives should refrain from engaging with the Nigerian officials and maintain silence.

Reports have revealed, however, that they made a visit to hold discussions on the Nigerian government’s prohibition of cryptocurrency trading websites.

Last month, Binance removed NGN from its P2P market. This came after the federal government turned their focus to the use of crypto platforms for trading and setting the value of the naira. The currency’s rapid devaluation in the past year has played a role in driving inflation up to almost 30% in the country.

The clash between the Nigerian government and Binance underscores the exchange’s continued regulatory challenges regarding its potential involvement in illegal financial transactions. Despite efforts to improve compliance measures under new leadership, the outcome in Nigeria could impact how other countries in West Africa approach crypto trading regulations.

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