Nigeria Detains Binance Executives Amid Crackdown on Crypto
The government of Nigeria has detained two senior executives from the cryptocurrency exchange Binance. This move comes as the country seeks to rein in speculation on the naira currency.
The arrests come amid a broader crackdown on crypto trading platforms in Africa’s most populous nation, according to the Financial Times.
Key Points:
- Executives flew to Nigeria after crypto trading websites were banned last week.
- Authorities detained seized passports; investigation into crypto exchanges is underway.
- Exchanges, seen as a way to trade, establish an unofficial price for rapidly devaluing naira.
- Central bank named Binance specifically; said $26 billion passed through the platform.
Read more: Nigeria Blocks Access To 3 Major Crypto Exchanges
After flying into Nigeria to protest the government’s decision to outlaw a number of cryptocurrency exchanges last week, the national security adviser’s office detained the Binance executives. Their passports have also been seized, according to people familiar with the matter.
The arrests highlight the Nigerian authorities’ focus on crypto platforms as an alternative venue for trading and pricing the naira. This is after the naira rapidly lost value last year, helping to push inflation to nearly 30%.Â
Nigeria’s central bank governor named Binance
On Tuesday, Central Bank Governor Olayemi Cardoso called out Binance by name, saying $26 billion has passed through Binance Nigeria from unidentifiable sources.
An adviser in the national security office did not respond to a request for comment on the executives’ detention.
The crackdown deals a reputational blow for Binance as it aims to reform following $4.3 billion in U.S. penalties paid last year after pleading guilty to money laundering and sanctions violations charges.
Read more: Elizabeth Warren Calls For Crypto To Follow Traditional Finance Rules
The dispute with Nigeria suggests the company still faces regulatory scrutiny over concerns about enabling illicit financial flows, even as it tries to improve its compliance mechanisms under new leadership.
The outcome in Nigeria may influence how other countries in the region aim to oversee crypto trading within their borders.
