The Office of the National Security Adviser has confirmed that the Federal Government is actively investigating the operations of Binance, a cryptocurrency exchange company. This move comes amidst growing concerns over the impact of cryptocurrency activities on the Nigerian economy.
Reports emerged earlier in the week alleging the arrest and detention of two executives from Binance by Nigerian authorities. According to sources, the executives had arrived in the country following a ban on their website by the Nigerian Communications Commission.
The ban on online platforms like Binance, enacted on February 21, 2024, aimed to curb what authorities perceived as continuous manipulation of the forex market and illicit movement of funds facilitated by crypto firms.
In an interview with our correspondent, Zakari Mijinyawa, Head of Strategic Communication at the Office of the National Security Adviser, confirmed that an interagency investigation into Binance’s operations was underway. He stated, “The office is leading and coordinating an interagency process by law enforcement officers – this includes ongoing investigations into the operations of Binance. Outcomes from this interagency investigation will be made available in due course.”
While Mijinyawa neither confirmed nor denied the arrest of the two executives, concerns over Binance’s impact on the economy were echoed by other government officials. Olayemi Cardoso, Governor of the Central Bank of Nigeria, revealed during a press briefing that over $26 billion had flowed through Binance without proper oversight in the past year. This lack of transparency has prompted the CBN to pursue a more aggressive regulatory approach.
Presidential spokesman Bayo Onanuga, speaking on a television program, emphasized the need for decisive action against Binance to safeguard Nigeria’s economy. He warned, “If we don’t clamp down on Binance, Binance will destroy the economy of this country. They just fix the rate… It’s sabotage, and we are trying to prevent that from happening henceforth.”
As the investigation unfolds, concerns remain high regarding the potential economic implications of unregulated cryptocurrency activities in Nigeria.
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