NIGERIA has escalated its crackdown on cryptocurrency by detaining two executives of Binance, a leading crypto trading platform. Authorities allege that Binance facilitated the naira currency’s slide to record lows this month. The arrest, initially reported by the Financial Times, comes amidst a broader regulatory push against crypto exchanges in Nigeria.
Last week, Nigerian telecom providers blocked user access to websites of major crypto exchanges, including Binance and Coinbase. In response, crypto platforms have been scaling down services in Nigeria. On Wednesday, Binance halted peer-to-peer trades allowing users to exchange the naira for USDT, a digital currency pegged to the US dollar.
During a briefing following Nigeria’s interest rate hike to 22.75 percent, central bank governor Yemi Cardoso singled out Binance, citing suspected manipulations of the naira on crypto platforms. Cardoso stated, ‘In the last one year alone, $26bn has passed through Binance Nigeria from sources and users who we cannot adequately identify.’ He alleged that some trading activity involved ‘illicit flows’ and emphasised collaboration with law enforcement to prevent market manipulation.
The timing of the Binance executives’ detention remains unclear. According to a report by Nigerian publication Premium Times, the executives, an American and a British citizen, arrived in the country on Sunday and declined a request for user transaction data during a meeting with security investigators on Monday. Binance has not responded to requests for comment on the matter.
The detention of Binance executives marks a significant escalation in Nigeria’s efforts to regulate the cryptocurrency sector. As authorities crack down on alleged market manipulation and illicit financial activities, the crypto industry faces increasing scrutiny and challenges in Nigeria.