Trade all cryptocurrencies. One of Binance’s top executives was arrested, hence the business has delayed getting a license in Nigeria since unresolved legal issues with the Nigerian authorities have resulted.
Making these claims, Binance is thinking on how best to follow Nigerian Securities and Exchange Commission (SEC) policies for Virtual Asset Service Providers (VASPs).
Based on an exclusive interview with Nairametrics, Binance has established two specific requirements that must be accomplished before it may apply for a license under Nigeria’s SEC system.
At first, the company requests the release from custody of Tigran Gambaryan, head of financial crime compliance for Binance, suspected of money fraud from Nigeria. Gambaryan got imprisoned on a business trip talking about Binance’s activities in the country.
If the second criteria is to be satisfied, legal issues between Exchange and the Nigerian government have to be settled. The government holds the company in charge of not paying taxes, misallocating funds, and breaking foreign currency rules. Though these claims are accurate, Binance claims it is still addressing issues with Nigerian authorities and did nothing wrong.
Binance Faces Tax Disputes And Legal Challenges In Nigeria
According to Nigerian officials including the Minister of Information Exchange paid taxes on more than $20 billion in 2023 earnings produced in the nation not at all. Conversely, Binance claims it has followed all the law and that it is yet unknown what the regulations for cryptocurrencies in Nigeria are.
Not wanting to be identified, a Binance representative informed Nairametrics that the business would not seek for a license until these issues are resolved. “Meet the conditions, or we will not apply,” a spokesman declared. The stipulations were on Gambaryan’s release and the necessity to resolve the legal conflicts.
Already struggling, the arrest of Tigran Gambaryan has made matters even more bad between Exchange and the Nigerian government. Originally accused with both tax evasion and money laundering, Gambaryan Though he is currently being jailed in Kuje jail on money laundering accusations, the tax evasion charges have been withdrawn.
He has had major medical issues including a ruptured disk, asthma, and malaria while incarcerated. Many times he has sought medical attention, but each time he is reportedly turned down.
Why Gambaryan is still under custody also interests the U.S. government. To advocate his medical release, American officials have discreetly spoken with Nigerian counterparts. Nevertheless, Nigerian officials have not yet let the executive obtain the necessary medical treatment, which has complicated foreign relations between the two nations.
Notwithstanding these legal and administrative issues, Binance remains a well-liked website among Nigerian consumers. Ten-three percent of Nigerian citizens, or around 22 million individuals, trade digital currencies daily. Among the rates of using cryptocurrencies worldwide, this is among highest.
But Binance has been excluded since it refuses to follow the Accelerated Regulatory Incubation Program (ARIP) set by the SEC.
Currently registered for ARIP are two local exchanges, Quidax and Busha. Exchange has been cautious, though, pointing up concerns about the speed with which the structure is being implemented and its lack of legal basis.
Although Nigeria has done a lot to control its expanding bitcoin industry, Binance’s non-registered under the SEC structure could cause the federal government to take more time to get the exchange under control.
Although the SEC established guidelines to control cryptocurrency activities, Binance’s legal issues and Gambaryan’s detention have further muddle things.
