"Nigeria Detains Binance Executives Amid Cryptocurrency Crackdown"
In a significant development, Nigeria has detained two senior executives from Binance, a major cryptocurrency exchange, as part of its ongoing crackdown on cryptocurrency platforms. The executives' detention came following Nigeria's recent decision to ban several cryptocurrency trading websites, indicating a firm stance by the government against digital currency activities.
According to a report on the Reuters website, the executives flew to Nigeria in response to the country's ban on various cryptocurrency trading platforms, only to be detained by the office of the national security adviser, with their passports seized. This move underscores the escalating regulatory scrutiny faced by cryptocurrency exchanges in Nigeria.
The crackdown follows a period during which several cryptocurrency websites emerged as preferred platforms for trading the Nigerian currency amidst chronic dollar shortages. The official exchange rate of the naira has been trading closely to the parallel market level following its recent devaluation, marking the currency's second adjustment in less than a year.
Nigeria has grappled with severe dollar shortages, leading to record lows in its currency value, attributed to foreign investors' exodus after a previous oil price collapse and the introduction of capital controls in 2015.
Speaking at a press conference, Nigeria's central bank governor, Olayemi Cardoso, raised concerns about illicit flows through crypto exchanges, specifically mentioning Binance. Cardoso highlighted that $26 billion had passed through Binance Nigeria in the past year from sources and users whose identities remain unclear.
Authorities in Nigeria, including the anti-corruption agency, police, and national security adviser, are reportedly coordinating an investigation into cryptocurrency exchanges. They have demanded access to a comprehensive list of Binance's Nigerian users since its inception, indicating a rigorous inquiry into the exchange's operations.
Last week, Nigeria's telecoms regulator instructed telecom companies to block access to several prominent cryptocurrency exchanges, including Binance, Coinbase, and Kraken. These measures align with President Bola Tinubu's government's efforts to attract overseas investment and implement market-friendly reforms to revitalize the struggling economy, which has included currency devaluations and regulatory actions against cryptocurrency platforms.
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