Skip to content Skip to sidebar Skip to footer

FG Demands User Data from Binance Amid Naira Speculation Probe

The federal government has intensified its scrutiny of Binance, requesting detailed information on its top 100 users in Nigeria and their transaction history over the past six months. This move comes amidst ongoing investigations into allegations of currency speculation, which have been unfolding for the past three weeks.

Binance finds itself at the center of these investigations, facing allegations of involvement in speculative attacks against the Naira, which has recently experienced unprecedented volatility against major currencies, particularly the Dollar, due to currency devaluation concerns.

According to reports from the Financial Times, the Office of the National Security Adviser has also demanded that Binance settle any outstanding tax obligations owed to the federal government arising from its operations within the country.

Nigeria’s focus on Binance and other cryptocurrency platforms stems from its efforts to mitigate its worst economic crisis in three decades and restore public confidence in its currency, which has faced significant challenges.

In response to these allegations, security agencies, in collaboration with officials from the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), have taken action, including blocking web access to cryptocurrency exchanges and detaining two Binance executives who traveled to Abuja to discuss the crackdown.

As a result of the escalating situation, Binance has removed the Naira from its trading platform.

Reports suggest that the detained Binance executives are being held at a guest house in Abuja, adjacent to the office of the national security adviser. Their phones and passports were confiscated upon detention. They could not communicate with Binance until March 5, 2024, a week after their detention, and have yet to be formally charged in court.

According to the Financial Times, the federal government obtained permission to detain both Binance executives for 14 days, which ended on Tuesday.

The crackdown on Binance follows ongoing investigations into the country’s foreign exchange market, which has reportedly suffered from years of distortions, manipulations, and speculative activities, leading to the continuous depreciation of the Naira against major currencies, especially the US dollar, in recent times.

At the recently concluded meeting of the Monetary Policy Committee (MPC), CBN Governor Mr. Olayemi Cardoso justified the central bank’s actions, particularly against Binance, citing the platform’s facilitation of speculative activities against the Naira. He expressed concerns about illicit inflows and suspicious transactions, emphasizing the CBN’s commitment to safeguarding Nigerians from the disruptive activities of such cryptocurrency platforms.

Cardoso highlighted collaborative efforts between the CBN, EFCC, police, and the Office of the NSA to crack down on alleged economic saboteurs, stressing the determination to maintain market integrity and prevent manipulative practices that distort economic stability.

What's your reaction?
0Love It!0Do Better!
Show CommentsClose Comments

Leave a comment

This Pop-up Is Included in the Theme
Best Choice for Creatives

Purchase Now