Richard

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 Binance is under scrutiny after reports surfaced that the exchange seized cryptocurrency funds from Palestinian users at the request of the Israel Defense Forces, but Binance claims&nbsp;that only accounts linked to illicit activities were restricted. Meanwhile, in Nigeria, calls are growing for the release of Binance executive Tigran Gambaryan, who has been detained since February on money laundering charges. Despite its ongoing legal challenges globally, Binance is making it a priority to boost its compliance efforts by hiring additional staff and expanding its anti-crypto scam initiatives.&nbsp;
 <h2 id="binance-seizes-palestinian-funds">Binance Seizes Palestinian Funds</h2>
 Binance has reportedly seized cryptocurrency funds belonging to Palestinians at the request of the Israel Defense Forces (IDF). This claim was made by <a href="https://x.com/ray_noOnes/status/1828006618539212919" target="_self">Ray Youssef</a>, co-founder of the peer-to-peer crypto platform Paxful and CEO at Noones P2P platform.&nbsp;
 Youssef stated on X that Binance confiscated all funds from Palestinian users after a request from the IDF, and that the exchange has refused to return the funds despite appeals. Youssef also shared that this could extend to users from other countries like Lebanon and Syria.
 The situation reportedly involves a <a href="https://pbs.twimg.com/media/GV5iU6GXYAAU81B?format=jpg&amp;amp;name=large" target="_self">letter</a> from Israel’s National Bureau for Counter Terror Financing that was signed in November of 2023 by Paul Landes. The letter was written in Hebrew, and cites Israeli anti-terrorism laws that allow the Minister of Defense to temporarily seize property, including cryptocurrency, linked to declared terrorist organizations. The letter also stated that cryptocurrencies that are transferred by or to such organizations are subject to confiscation under these laws.
 In response to these claims, Binance <a href="https://cointelegraph.com/news/binance-seize-funds-palestine-israel" target="_self">denied</a> that it blocked funds from all Palestinian users. A spokesperson for the exchange also clarified that only a small number of accounts linked to illicit activities were restricted. Binance also stressed that it complies with internationally accepted sanctions legislation, similar to other financial institutions. The exchange did not share any details about the number of affected users or the timing of the restrictions.
 Palestine is a minor market for Binance, and contributes to only 0.05% of the platform's traffic over the past year. Despite this, the traffic from Palestine to Binance has surged by more than 80% since August of 2023.
 <h2 id="calls-grow-for-binance-exec-s-release-in-nigeria">Calls Grow for Binance Exec’s Release in Nigeria</h2>
 Binance is also a very hot topic in Nigeria. Industry leaders and observers are increasing their calls for Nigerian authorities to release Tigran Gambaryan, a Binance executive that has been detained since February.
 In an Aug. 27 <a href="https://www.binance.com/en/blog/leadership/from-richard-teng-binance-ceo-tigrans-deteriorating-condition-after-6-months-of-unjust-detention-426448993678618773?hl=en" target="_self">blog post</a>, Binance CEO Richard Teng urged the Nigerian government to release Gambaryan on humanitarian grounds due to concerns about the severe physical and mental impact of his long detention. Teng argued that the allegations against Gambaryan were completely baseless and that his imprisonment was unnecessary. Teng also mentioned Binance’s history of resolving issues with governments worldwide without any harm to its employees.
 Gambaryan&nbsp; has reportedly experienced severe health issues during his detention. His wife, Yuki, also revealed in a <a href="https://www.youtube.com/watch?v=-rCDKYri0Hg" target="_self">video</a> that his condition has deteriorated to the point where he can no longer walk, he is suffering from bouts of malaria, pneumonia, and the mental toll of his confinement is getting bigger by the day. Despite these complications, he has been denied necessary medical care.
 Gambaryan was detained in Nigeria along with his colleague Nadeem Anjarwalla after a meeting with officials to discuss regulatory concerns with Binance. The two executives were initially charged with tax evasion and money laundering. In March, Anjarwalla was able to escape custody and fled to Kenya, where he was later apprehended and now faces possible extradition back to Nigeria.
 Many US lawmakers have urged President Biden to help with Gambaryan’s release as the charges brought against him were unfounded and aimed at pressuring Binance. A <a href="https://www.change.org/p/help-bring-former-us-federal-agent-tigran-gambaryan-home-from-unjust-detention-in-nigeria" target="_self">petition</a> was also launched by Gambaryan’s wife, and has gathered more than 5,000 signatures, calling on the US State Department, President Biden, and Nigerian authorities to intervene.
 Teng’s call to action (Source: <a href="https://www.binance.com/en/blog/leadership/from-richard-teng-binance-ceo-tigrans-deteriorating-condition-after-6-months-of-unjust-detention-426448993678618773?hl=en" target="_self">Binance</a>)
 While the Nigerian tax authority dropped its charges against Gambaryan in June, he still faces money laundering charges from the Economic and Financial Crimes Commission (EFCC) and is expected to return to court on Sept. 2. It is still unclear if Anjarwalla will appear in court after his escape.&nbsp;
 Gambaryan has pleaded not guilty, and is being held at the Kuje Detention Facility close to&nbsp; Abuja. In March, Binance announced it would stop all transactions in Nigeria’s currency, the naira, while Nigerian authorities pursue civil penalties against the exchange.
 <h2 id="nigeria-issues-first-crypto-exchange-license">Nigeria Issues First Crypto Exchange License</h2>
 Nigeria’s stance on crypto might be taking a positive turn after the situation with Binance. The Nigerian Securities and Exchange Commission (SEC) has granted <a href="https://x.com/quidaxglobal" target="_self">Quidax</a>, an Africa-based crypto exchange, its first <a href="https://techreport.com/crypto-news/nigerias-sec-approves-first-operating-license-for-local-crypto-exchange-quidax/" target="_self">provisional operating license</a>. The license allows Quidax to operate as a registered crypto exchange in Nigeria, which could suggest a more positive shift in the regulatory landscape.
 Quidax described the SEC’s approval as a major boost for the Nigerian crypto community. Buchi Okoro, co-founder and CEO of Quidax, commended the SEC's leadership under Emomotimi Agama for bringing order, confidence, and investor protection to the industry. The regulatory approval also opens doors for Quidax to collaborate with banks and financial institutions, pending approval from the Central Bank of Nigeria.
 This happened after a comprehensive amendment to the SEC’s rules in June, which addressed digital asset issuance, exchange platforms, and custody, including the introduction of the Accelerated Regulatory Incubation Programme. While the new regulatory framework aims to create a secure environment, there were initial concerns that the strict licensing requirements, including a minimum capital requirement of 500 million naira and a Fidelity Insurance Bond, might reduce the number of local crypto exchanges.
 Nigeria is Africa’s largest economy, and has consistently ranked high in global crypto adoption. According to <a href="https://go.chainalysis.com/rs/503-FAP-074/images/2020-Geography-of-Crypto.pdf" target="_self">Chainalysis’ 2023 Cryptocurrency Geography Report</a>, Nigeria is second in crypto adoption among 154 countries.&nbsp;
 Despite this, the anticipated influx of foreign investment in the Nigerian crypto market has not happened as expected. However, the new regulatory framework and Quidax’s licensing may change this.
 <h2 id="binance-grows-compliance-team">Binance Grows Compliance Team</h2>
 It seems like Binance is going to be making some changes, especially considering all the challenges it is facing in countries around the world. The exchange has <a href="https://www.bloomberg.com/news/articles/2024-08-22/binance-hiring-1-000-as-compliance-spending-tops-200-million" target="_self">increased</a> its workforce by 1,000 employees this year, and 20% of the new hires will be focused on compliance.&nbsp;
 This expansion is part of the company’s broader goal to meet regulatory requirements. In fact, Binance’s annual compliance spend exceeds $200 million. According to Richard Teng, the firm wants to increase its compliance team to 700 by the end of 2024, up from the current 500. The company now <a href="https://www.binance.com/en/careers" target="_self">employs</a> more than 5,200 people across more than a hundred locations.
 Teng also shared that Binance is still very committed to creating a secure ecosystem. He pointed out that Binance has been collaborating with <a href="https://www.binance.com/en/blog/security/binance-teams-up-with-macau-judiciary-police-to-launch-joint-antiscam-campaign-3832805286549236891" target="_self">law enforcement agencies</a>, and revealed that the company received 63,000 requests from these agencies this year, up from 58,000 in 2023. Additionally, Binance has partnered with the Macau Judiciary Police to launch an anti-crypto scam campaign and has reclaimed over $73 million in stolen funds this year.&nbsp;
 Read also: <a href="https://coinpaper.com/4497/cheems-dog-cheems-meme-cheems-cryptocurrency-and-who-is-cheems-anyway" target="_self">Cheems Dog, new meme token?</a>
 Other companies are also following suit as leading stablecoin issuer Tether is also <a href="https://www.bloomberg.com/news/articles/2024-08-09/tether-to-double-staff-by-mid-2025-in-compliance-finance-push" target="_self">increasing</a> its compliance workforce. Tether wants to double its team to 200 by mid-2025.&nbsp;
 Despite Binance’s proactive measures, the company and its former CEO, Changpeng “CZ” Zhao, remain stuck in a legal battle with the SEC over alleged securities law violations. Binance is contesting the claims and seeking to have the case dismissed.
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Binance Faces Criticism Over Palestinian Crypto Fund Confiscation

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