Nigeria Tightens Grip on Crypto Firms: Probes Binance, Raises Registration Fees

By: Eva Baxter

The federal court in Nigeria has directed Binance to submit comprehensive data of all Nigerian customers to the country's top anti-corruption body, the Economic and Financial Crimes Commission (EFCC), amid rising complications between the cryptocurrency exchange and the local authorities. This directive is part of an extended investigation into Binance's operations in Nigeria, as authorities blame the exchange for aggravating the instability of the Naira, instigated by the shift of locals to cryptocurrencies amidst uncontrolled inflation.

The investigation follows accusations of the exchange's involvement in the nation's foreign exchange issues through alleged rate manipulation. The official website of the exchange has subsequently been obstructed, and two senior executives from the firm have been detained. The EFCC discovered users allegedly utilizing the platform for price discovery, confirmation, and market manipulation, leading to distortions in the market and depreciation of the Naira value.

In an unrelated development, the National Securities Commission proposed substantial increases to all supervisory fees for cryptocurrency companies. This proposal comes as part of Nigeria's wider crackdown on the cryptocurrency sector. The verdict on Binance's compliance with the Nigerian authorities' demands is yet undetermined. Binance is yet to provide additional comment and it remains unclear whether the firm will comply with this directive.