Binance Delays Nigerian License Application, Demands Gambaryan’s Release
Date: 2024-09-20 Author: Gabriel Deangelo Categories: IN WORLD
Cryptocurrency exchange Binance has set two specific conditions before it will consider licensing under the SEC’s regulatory framework for virtual asset service providers (VASPs).
The first requirement is the release of Binance’s head of financial crimes enforcement, Tigran Gambaryan, who is in custody in Nigeria. The second condition is the resolution of legal disputes between the company and the Nigerian government, which accuses Binance of tax evasion, money laundering, and currency law violations.
Binance’s Nigerian Licensing Conditions: “Meet the Conditions or We Won’t Apply”
In an exclusive interview with Nairametrics, Binance outlined its requirements before considering joining the Nigerian SEC’s regulatory framework under the Accelerated Regulatory Incubation Program (ARIP).
The exchange said it will not apply for a license until Gambarian, who is currently being held on money laundering charges, is released. Gambarian was detained while visiting Nigeria to discuss Binance’s operations in the country.
In addition to Gambarian’s release, Binance is seeking to resolve legal and regulatory disputes with the Nigerian government.
Nigerian authorities, including the country’s information minister, have accused Binance of failing to pay taxes on more than $20 billion in revenue it generated in Nigeria in 2023.
Despite these allegations, Binance denies any wrongdoing and continues to work with the Nigerian government to resolve the situation.
Despite the SEC’s efforts to regulate the cryptocurrency market in Nigeria, Binance has been reluctant to comply, citing ongoing legal challenges and Gambaryan’s detention.
The SEC has already approved two local cryptocurrency exchanges, Quidax and Busha, under the ARIP program, but Binance has so far held off on participating.
Tigran Gambaryan Arrested Amid Ongoing Legal Wrangling
Gambaryan, a key Binance official responsible for financial crimes compliance, was arrested in Nigeria on money laundering charges while on a business trip to meet with government officials.
He was initially charged with both tax evasion and money laundering, but the tax evasion charges were later dropped, but Gambaryan remains in Kuje Prison on money laundering charges.
His detention comes with serious health issues, including a herniated disc that requires him to use crutches, as well as illnesses such as pneumonia, malaria, and tonsillitis.
Despite medical reports indicating that he needs surgery, his requests for medical assistance, including a wheelchair during court hearings, have reportedly been denied.
The prolonged detention has also strained relations between Nigeria and the United States, with American officials meeting privately with Nigerian authorities to secure Gambaryan’s release on medical grounds.
Despite these legal challenges, Binance remains one of the most popular cryptocurrency exchanges among users in Nigeria. Many Nigerians continue to use the platform despite restrictions on bank transfers and ongoing regulatory uncertainties.
According to an anonymous source at the Nigerian SEC, Binance is hesitant to register with ARIP because it believes the entity was hastily created following the arrests of its executives and lacks a proper legal basis from the National Assembly.
While the SEC has made strides toward regulating the cryptocurrency industry in Nigeria, Binance’s failure to register under ARIP could delay the country’s efforts to bring the exchange under federal oversight.
Nigeria is one of the countries with the highest adoption rates of cryptocurrency, with over 22 million people (10.3% of the population) actively involved in cryptocurrency trading.
