Crypto traders in Nigeria have reportedly called on the government to take a measured approach in addressing regulatory issues with crypto companies like Binance. As part of their suggestions to the Nigerian authorities, crypto investors in the country have asked the government to follow India’s approach. In recent months, Binance’s business in Nigeria has been stalled after it was accused by the government of failing to screen suspicious transactions related to money laundering and not having a physical presence in the country to address customer complaints.
Mark Nduagibe, a crypto trader from Nigeria, was recently in Lagos to attend an event where he reportedly spoke to the media and discussed the situation at length.
He noted that the government and people of Nigeria need to understand that cryptocurrencies are real trading instruments and that the country needs to take steps to become an early adopter of this technology. For that to happen, Nduagibe said, regulators need to take steps to bring more legal clarity for crypto companies to adhere to and provide safe services to citizens.
The trader noted that Nigeria is embroiled in a lawsuit with the exchange after two executives were jailed. India has dealt with a similar situation by addressing the issue in a measured manner.
“We can all see how India maturely handled the issue with Binance over alleged activities as a reported entity without registration by imposing a fine of $2.25 million. That is a major milestone in crypto regulation. That is what Nigeria should be doing instead of letting the CEO of the exchange languish in jail,” Nduagibe was quoted as saying.
Earlier this month, India restored Binance’s access to the country after the exchange paid a fine for violating the Prevention of Money Laundering Act, 2002 (PMLA). Additionally, Binance obtained its 19th global operating license in India.
“India, on the other hand, has not arrested employees or taken extreme measures to enforce compliance. Instead, it has chosen to hold Binance accountable through financial penalties and strict regulatory standards while allowing the company to continue operating as normal,” said another Nigerian crypto trader. told CryptoPolitical.
Binance Legal Issues in Nigeria
In February, the Central Bank of Nigeria accused Binance of facilitating untraceable transactions worth $26 billion (approximately Rs. 2,18,287 crore), according to a blog. Later, Binance decided to suspend all services in Nigeria. Binance also claimed in its blog that the allegations against the company resulted in a ban in the country. More than 1,000 bank accounts related to peer-to-peer trading through Binance were also frozen around the same time that executives from the company were detained.
This week, Binance CEO Richard Teng asked Nigeria to release his detained executive for medical supervision. Binance’s trial in Nigeria is now set for October 11, Reuters has reported. Binance users in Nigeria are worried about financial losses due to the exchange’s tense situation with authorities.
In July, another crypto exchange, OKX, also came along reportedly decided to leave Nigeria due to regulatory concerns.
