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.
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:
1. Release of Detained Binance Executive, Tigran Gambaryan
Binance believes that its executive must be released from Nigerian custody before it can explore joining ARIP.
2. Settlement with the Nigerian Government
Recall that Nigeria’s Minister of Information, Idris Mohammed, had accused Binance of having a turnover of over $20 billion in Nigeria in 2023 alone, without paying taxes.
The federal government has already commenced prosecution of Binance on the grounds of tax evasion, money laundering, and foreign exchange contravention, while the platform denies these allegations.