The Federal Government has issued a directive to Binance, a cryptocurrency exchange, demanding detailed information on its top 100 users in Nigeria along with complete transaction records spanning the past six months.
This move, as reported by the Financial Times, aims to shed light on the ongoing negotiations between Binance and Nigerian authorities.
According to the report, the Office of the National Security Adviser (ONSA) is also urging Binance to address any outstanding tax obligations it may have in the country.
This development comes amidst the government’s recent crackdown on Binance, which it accuses of undermining efforts to stabilize the local currency, the naira.
The tension between the government and Binance escalated following remarks by Bayo Onanuga, the special adviser to President Bola Tinubu on information and strategy, who called for the prohibition of Binance and other cryptocurrency platforms in Nigeria.
Onanuga alleged that Binance was manipulating exchange rates for Nigeria, usurping the role of the Central Bank of Nigeria (CBN).
Shortly after Onanuga’s statement, CBN Governor Olayemi Cardoso claimed that $26 billion had passed through Binance from undisclosed sources. Cardoso stated that the CBN, alongside the Securities and Exchange Commission (SEC) and other security agencies, were collaborating to prevent any manipulation in the foreign exchange (FX) market.
On March 8, Binance halted all transactions involving the naira on its platform, following reports that the government demanded $10 billion in restitution for allegedly profiting from illicit transactions in Nigeria.
Meanwhile, reports suggest that the ONSA in Nigeria is urging Binance to settle any outstanding tax liabilities.
As part of its crackdown on the cryptocurrency firm, the FG detained executives including Nadeem Anjarwalla, a 37-year-old UK and Kenyan national serving as Binance’s regional manager for Africa, and Tigran Gambaryan, a 39-year-old US citizen serving as Binance’s head of financial crime compliance.