Nigeria is ready to cooperate with crypto companies in compliance with the law
Date: 2025-03-24 Author: Henry Casey Categories: IN WORLD
Nigerian authorities are increasingly expressing concern that cryptocurrencies can be used to finance terrorist activities, money laundering and tax evasion. This was stated by the Minister of Information Mohammed Idris, emphasizing that such risks are relevant not only for Nigeria, but also for other countries. He insists that any transactions with digital assets must be carried out strictly within the legal framework.
The tension between the Nigerian government and crypto companies has increased after a high-profile conflict with Binance. In February, the authorities accused the exchange of causing serious economic damage to the country associated with a sharp drop in the naira exchange rate, and demanded that the company pay $79.5 billion in compensation, as well as $2 billion in taxes. Binance rejected the accusations, declaring its innocence. At the same time, the regional director of the exchange, Tigran Gambaryan, was detained on suspicion of facilitating money laundering. He was released eight months later, and the criminal case against him was closed. As a result of the scandal, Binance completely ceased operations in the country in March 2024.
Nevertheless, Minister Idris assured that the government does not intend to put pressure on crypto companies or prohibit their work. According to him, the authorities are only seeking compliance with the law: “We are open to dialogue and cooperation if companies operate legally. We have other crypto platforms operating here, and there are no complaints about them because they comply with the requirements of the law.”
This was confirmed by the decision of the Nigerian Securities and Exchange Commission, which in August 2024 issued the first temporary licenses for activities in the crypto sphere to Busha and Quidax. The regulator acknowledged that cryptocurrencies can play a positive role in the development of the country's economy, and therefore chose the path of regulation rather than prohibitions.
Thus, despite the Binance incident, Nigeria is showing a willingness to engage with crypto companies as long as they operate in accordance with legal norms. The authorities are betting on creating a legal and transparent ecosystem that will facilitate the growth of the digital economy.
