Binance, the world’s largest cryptocurrency exchange, has laid out two conditions for registering with Nigeria’s Securities and Exchange Commission (SEC). The first condition is the release of Tigran Gambaryan, a Binance executive currently detained in Nigeria. The second condition is resolving ongoing legal issues with the Nigerian government, including allegations of tax evasion and money laundering.
The Nigerian government has accused Binance of operating in the country without paying taxes, with a reported turnover of over $20 billion in 2023. In response, Binance maintains that it cannot consider joining the SEC’s Accelerated Regulatory Incubation Programme (ARIP) until these conditions are met.
Nigeria’s SEC created ARIP to allow crypto platforms to register and operate legally in the country. Two exchanges, Quidax and Busha, have already received approval under this program. However, Binance believes the SEC’s framework lacks proper legal backing from Nigeria’s National Assembly and was hastily created after the arrest of its executives.
Despite the dispute, Binance remains popular among Nigerians, with over 22 million active cryptocurrency users in the country. However, Binance has reduced its influence in Nigeria due to ongoing court cases, and bank transfers to the platform are currently restricted. Nigerians can still access Binance through VPNs and other means.
The outcome of the ongoing court cases will likely determine Binance’s future operations in Nigeria. The dispute between Binance and Nigerian authorities is being closely watched by the crypto industry, as the resolution could set important precedents for how global crypto platforms interact with national regulators. The SEC expects Binance to eventually register due to its large Nigerian user base.
In a statement, a Binance spokesperson said, “We hope that someday soon, once Tigran has been freed and our issues are settled, we may seek registration” . The situation highlights the challenges of regulating the rapidly evolving cryptocurrency industry, especially in emerging markets with high adoption rates.
