- Nigerian authorities have detained two senior Binance employees amid an investigation into the crypto exchange’s unlicensed operations and alleged contribution to currency devaluation
- Nigeria blocked major crypto exchanges like Binance and opened investigations into platforms accused of forex manipulation and illicit flows
- Nigeria had banned banks from servicing crypto exchanges in 2021 but reversed course; however authorities are now escalating oversight of the crypto industry
Nigerian authorities have detained at least two senior Binance employees as part of an investigation into the crypto exchange’s operations in the country. The detained executives include an American and a British citizen. This comes amid a broader crackdown on crypto trading platforms accused of manipulating Nigeria’s currency and forex markets.
Binance’s Activities Draw Scrutiny in Nigeria
Binance has exploited “loopholes” in entering the Nigerian market without proper licensing, according to a local blockchain association. The exchange is being blamed for contributing to the naira’s devaluation. Nigeria’s securities regulator said last year that Binance was operating illegally in the country.
Nigeria Blocks Crypto Exchanges, Investigates Manipulation
Nigeria’s telecom regulator ordered internet providers to block access to Binance, Coinbase, Kraken and other crypto exchanges. This followed accusations that these platforms aided currency speculation and forex manipulation. The central bank governor said there are signs of illicit fund flows through Binance, with $26 billion passing through the exchange from unidentified sources in the past year.
Central Bank Reverts 2021 Crypto Trading Ban
In December, Nigeria’s central bank reversed a 2021 ban that prevented local banks from servicing crypto exchanges. The bank is part of a government task force now investigating crypto trading platforms. The central bank governor said authorities will do everything to prevent market manipulation.
Conclusion
The detention of senior Binance employees signals an escalation of Nigeria’s crackdown on the crypto exchange. With authorities blocking access to major trading platforms and investigating market manipulation, Nigeria is tightening oversight of the crypto industry.
