Nigeria’s Request for User Data: Binance’s Response Expected

The Nigerian government is reportedly placing pressure on cryptocurrency exchange Binance to hand over information on its top 100 users in the country. Nigerian authorities have also requested Binance share the transaction history of these users for the past six months. They have asked the exchange to resolve any outstanding tax liabilities. These requests are part of negotiations between Binance and Nigeria, with the government claiming that the exchange has had a detrimental impact on the local currency, the Nigerian naira. Nigerian officials have accused Binance and other cryptocurrency platforms of manipulating the naira and causing a significant decline in its value. They have even suggested banning platforms like Binance from operating in the country. In response to these allegations, Nigerian prosecutors detained two senior Binance executives and they remain in custody. Binance had already delisted all naira transactions and stopped peer-to-peer naira transactions prior to their detainment. The Nigerian government is considering imposing a $10 billion fine on Binance as retribution for the damage caused to the country’s economy. Binance has not commented on the allegations made against the exchange by Nigerian authorities. They have stated that they have not exited Nigeria entirely, but rather discontinued naira trading pairs and transactions. Some online users question Binance’s ability to serve customers in Nigeria under these circumstances. Nigeria has witnessed significant growth in its crypto economy in recent years and is currently one of the leading countries in terms of crypto adoption. In 2022, it was named the most crypto-obsessed country in the world based on Google searches for cryptocurrencies. In June 2023, Nigeria abandoned its currency peg and allowed the naira to trade freely, resulting in record-high inflation. Consumer inflation has continued to rise, reaching nearly 30% in January 2024.