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Binance sets two conditions before ‘registering’ under Nigeria’s SEC crypto program
Nnaemeka Onyekachi by Nnaemeka Onyekachi 1 day ago
FG detains two Binance Executives over alleged FX manipulations
The cryptocurrency trading platform Binance has outlined two conditions that must be met before it can consider registering under Nigeria’s Securities and Exchange Commission’s (SEC) special framework program for onboarding Virtual Assets Service Providers (VASPs), including crypto platforms.
Binance’s position is in response to the regulatory frameworks set out for cryptocurrency platforms by Nigeria’s regulatory body, SEC, which includes opening an office in Nigeria.
Nairametrics previously reported that, among other requirements, the SEC’s framework applies to virtual asset service providers and token issuers conducting business in Nigeria or offering services to Nigerian consumers, including platforms that facilitate the offering, trading, exchange, custody, and transfer of virtual/digital assets.
What Binance is saying
Nairametrics previously reported that the SEC granted an Approval-in-Principle to two crypto exchanges, Quidax and Busha, giving them the status of legally recognized crypto trading platforms in the country under the Accelerated Regulatory Incubation Programme (ARIP).
Through ARIP, the SEC has opened the door for cryptocurrency platforms to come under the federal government’s regulatory purview, considering tax obligations and other pertinent national security issues.
In response, a Binance spokesperson told Nairametrics in an exclusive interview that two conditions must be met before it may consider joining ARIP.
Here are the conditions:
Release of Detained Binance Executive, Tigran Gambaryan
Binance believes that its executive must be released from Nigerian custody before it can explore joining ARIP.
ongoing court cases against Binance in Nigeria, the platform has somewhat reduced its influence on Nigerians, although Nigerians still use Binance features through virtual private networks (VPNs) and other means.
The official emphasized that the SEC does not regulate foreign crypto firms, but under its rules, every foreign crypto platform must establish an office in Nigeria so the Commission can supervise them.
The source added that, in the long run, Binance will have to register due to the high number of Nigerians trading on their platform.
Nairametrics also reached out to SEC Director Abdulkadir Abbas regarding Binance. His response was that the SEC’s press release on ARIP and approval for Quidax and a few others remains Nigeria’s “position” for all cryptocurrency platforms seeking to operate lawfully in Nigeria.
Meanwhile, another source familiar with developments at Binance’s legal dispute with the federal government confirmed to Nairametrics that the crypto firm has not adhered to the SEC’s framework because they believe it is not supported by any law of the National Assembly.
Additionally, the source claimed the framework was allegedly hurriedly formulated by the SEC after the arrest and arraignment of its executives by Nigerian authorities.
What to Know
Nigeria is among the countries with the highest and fastest crypto adoption rates. Over 22 million people (10.3% of the population) are active crypto owners.
The crackdown on peer-to-peer naira trading by the Nigerian SEC led to Binance and KuCoin delisting the naira from their platforms.
The spat between Nigerian authorities and Binance, the largest crypto exchange in the world, has been widely covered in major news outlets.
In a statement attributed to a Binance spokesperson on September 3, 2024, the platform stated that Nigerian authorities do not need to detain Tigran to settle any alleged past issues.
But FG alleges Gambaryan played a role in enabling the contravention of Nigeria’s laws.
As it stands, all eyes are on Nigerian courts to pass verdicts on FG’s legal dispute with Binance.
Source: Nairametrics