Binance, one of the world’s largest cryptocurrency trading platforms, has outlined two key conditions before considering registration under Nigeria’s Securities and Exchange Commission’s (SEC) special framework for Virtual Assets Service Providers (VASPs). These conditions respond to Nigeria’s SEC requirements, which include setting up a local office.
According to Nairametrics, the SEC’s regulatory framework applies to virtual asset providers and token issuers operating in or offering services to Nigeria, such as the trading and custody of digital assets. Binance’s response follows the SEC’s approval of Quidax and Busha under the Accelerated Regulatory Incubation Programme (ARIP), marking them as the first legally recognized crypto platforms in Nigeria.
Binance, however, remains hesitant to comply. A Binance spokesperson revealed two conditions that must be met before joining ARIP:
1. Release of Binance Executive, Tigran Gambaryan: The company insists that its executive, currently in Nigerian custody, must be freed before any further action is taken.
2. Resolution of Legal Issues: Binance faces allegations of tax evasion and money laundering, with Nigeria’s Information Minister accusing the platform of generating over $20 billion in 2023 without fulfilling tax obligations. The platform denies these charges, but legal issues need to be resolved before registration.
Despite the SEC’s expectations, Binance remains unregistered under the framework, citing continued strong patronage from Nigerians. The company sees no need to comply as users can still access its services, often through virtual private networks (VPNs).
Nigeria is known for its high crypto adoption rate, with over 22 million citizens actively trading digital assets. However, Binance’s legal battle with the Nigerian government, including the arrest of its executive, has raised uncertainties about its future in the country, with court rulings expected to determine its next steps.
Credit: Nairametrics (Text Excluding Headline)
