Nigerian officials have apprehended two top Binance leaders and taken away their travel documents to regulate cryptocurrency platforms in the country.
According to the report by the Financial Times on Wednesday, two executives made a trip to the country following Nigeria’s ban on several crypto websites. Unfortunately, they were detained by the office of Nigeria’s national security adviser upon reaching their destination. The identities of these executives remain unknown at this time.
As was reported by local media, the regulator of telecommunications in Nigeria instructed the telecoms to limit access to specific websites including Binance, Coinbase, and OctaFX which is meant to hamper cryptocurrency speculation in the country.
The Nigerian government has come forward to mitigate the risk posed by cryptocurrencies on the naira which has been persistently weakened against the US dollar.
Recently, Bayo Onanuga, a special adviser to President Bola Tinubu, voiced concerns about the potential economic impact of not regulating Binance, stating: The danger was highlighted that leaving Binance to rule unchallenged would be extremely hazardous for financial stability.
Crypto News had not received a response from Binance by the time of publication.
Binance Halts Naira Trading After Execs Detained
Following their arrest, Binance allegedly halted the trading of the naira with bitcoin and tether cryptocurrencies on their platform.
At a press briefing earlier this week, Nigeria’s central bank governor, Olayemi Cardoso pointed a finger at Binance while discussing the movement of funds through cryptocurrency exchanges. He highlighted the bank’s unease about questionable transactions occurring on different crypto trading platforms.
We have seen a staggering $26bn flow through Binance Nigeria in just the past year, originating from sources and users that we are unable to pinpoint, he informed the press.
This Nigerian Government policy has triggered the worries among the cryptocurrency traders and investors in the country. Many are concerned with the effects it will have on their capability to trade with or invest in digital currencies.
Binance’s decision to halt naira trading on its platform is a significant development in this ongoing saga. It signals a shift in the way cryptocurrency exchanges are operating in Nigeria, as they navigate the regulatory landscape set forth by the government.
Nigerian Authorities Launch Joint Probe into Crypto Exchanges
Nigeria’s anti-corruption agency, police, and national security adviser are said to be working together to investigate crypto exchanges. They have asked for a comprehensive list of all individuals in Nigeria who have used Binance since its inception.
Nigeria emerged at the forefront of crypto awareness in the findings by ConsenSys last year, surpassing even the US and Europe. The data showed that a staggering 99% of Nigerians had a comprehensive knowledge of cryptocurrencies, with 70% demonstrating a grasp of the fundamentals of blockchain technology.
Despite Nigeria’s Central Government banning ownership of digital assets in 2021 over investor protection concerns, statistics show a growing interest in the market. The former administration made strong statements about digital assets before launching its own Central Bank Digital Currency (CBDC), known as the e-naira.
Frequently asked questions:
Which individuals from Binance are currently being held in custody in Nigeria?
It is currently unknown who the Binance executives being held in Nigeria are.
Rewritten text: What was the reason behind the detention of Binance executives in Nigeria during the second quarter?
Nigeria has been cracking down on crypto exchanges, resulting in the detention of several executives following the ban on access to various crypto websites.
What was the reason for regulations in crypto trading in Nigeria to be directed at them in the third quarter?
The Federal government in Nigeria through its telecoms regulator is set to enforce the restrictions on cryptocurrency platforms such as Binance, Coinbase etc. Such a decision was undertaken to regulate the level of crypto market speculations and prevent fears of currency volatility.
Has Binance taken any measures whatsoever that would have at least partly resolved the issue of the executive’s arrest?
On the heels of the arrest of its executives, Binance came to the decision that trade of naira with bitcoin and tether digital coins on its platform will be suspended.
Why is the Ministry in Nigeria keeping an eye on Binance?
The governor of Nigeria’s central bank demanded that an investigation be launched into last year’s dump of 82 billion naira (about $26 billion) in dodgy transactions that passed through Binance Nigeria alone. This happened as a result of a joint task of regulatory agencies (including Market Trade Units) to control and check the most represented cryptocurrency exchanges.
Who is responsible for the investigation of cryptocurrency schemes in Nigeria?
The investigation is going on with joint forces involving agencies such as the anti-corruption agency of Nigeria, its police force and its national security advisor. Many of their pleas were around their demand for a detailed list of all Binance collieries in Nigeria and their names.
Is Nigeria well conversant with the topics affecting the cryptocurrency sector?
In 2021, the world saw Nigeria as the number one in crypto literacy, surpassing the United States and European countries, as indicated by Consensys. 99% of Nigerians might gain enough information about cryptocurrencies, despite the nation’s government’s attempts to ban the possession of digital assets.
What was the reason that Nigeria endorsed this digital asset prohibition in 2021?
In 2021, however, the Central Government of Nigeria took a step further by prohibiting the ownership of digital assets out of concerns that their investors may be vulnerable.
What steps was the previous government of Nigeria taking to regulate the actions of the cryptocurrency industry?
Before the takeoff of the E-Naira, there were big declarations from the government that were being made about the cryptocurrency market.
Have the company been affected in any way and do they have any response or official statements regarding the arrest of any of their executives?
As of this time, there is no response from Binance yet to any inquiries about the arrests of its executives in Nigeria which was last reported on the most recent update.
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