Two senior executives at Binance have been detained
in Nigeria as the country intensifies efforts to curb speculation on its
currency, the Financial Times reported. The move followed Nigeria’s recent ban
on several cryptocurrency trading websites to address the rapid devaluation of
the naira and soaring inflation rates.
Nigeria’s crackdown on cryptocurrency exchanges
stems from concerns over the devaluation of the naira, which has contributed to
record-high inflation rates nearing 30%.
Cryptocurrency websites have reportedly become an
alternative platform for trading and establishing unofficial exchange rates for
the naira exchange rates. This has prompted Nigerian authorities to take action
against them.
The executives traveled to Nigeria following the ban
on cryptocurrency trading websites but were detained upon arrival by the office
of the country’s national security adviser.
Consequently, Binance suspended naira trading
against bitcoin and tether digital coins on its platform. According to the FT,
the Nigerian authorities seized the executives’ passports.
Government’s Concerns and Investigation
Nigeria’s central bank governor, Olayemi Cardoso,
expressed concerns about illicit financial flows through cryptocurrency
exchanges, citing $26 billion passing through Binance Nigeria in one year. The
government, including anti-corruption agencies and the police, is coordinating
an investigation into cryptocurrency exchanges.
The detention of Binance executives adds to the
company’s recent challenges.
Two senior executives at Binance have been detained
in Nigeria as the country intensifies efforts to curb speculation on its
currency, the Financial Times reported. The move followed Nigeria’s recent ban
on several cryptocurrency trading websites to address the rapid devaluation of
the naira and soaring inflation rates.
Nigeria’s crackdown on cryptocurrency exchanges
stems from concerns over the devaluation of the naira, which has contributed to
record-high inflation rates nearing 30%.
Cryptocurrency websites have reportedly become an
alternative platform for trading and establishing unofficial exchange rates for
the naira exchange rates. This has prompted Nigerian authorities to take action
against them.
The executives traveled to Nigeria following the ban
on cryptocurrency trading websites but were detained upon arrival by the office
of the country’s national security adviser.
Consequently, Binance suspended naira trading
against bitcoin and tether digital coins on its platform. According to the FT,
the Nigerian authorities seized the executives’ passports.
Government’s Concerns and Investigation
Nigeria’s central bank governor, Olayemi Cardoso,
expressed concerns about illicit financial flows through cryptocurrency
exchanges, citing $26 billion passing through Binance Nigeria in one year. The
government, including anti-corruption agencies and the police, is coordinating
an investigation into cryptocurrency exchanges.
The detention of Binance executives adds to the
company’s recent challenges.
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- Source: https://www.financemagnates.com//cryptocurrency/binance-faces-regulatory-storm-as-executives-detained-in-nigeria-report/
