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Binance won’t consider complying with Nigeria’s digital asset regulations until its detained executive, Tigran Gambaryan, is released from custody.
Speaking with Nairametrics, a Binance spokesperson <a href="https://nairametrics.com/2024/09/18/binance-sets-two-conditions-before-registering-under-nigerias-sec-crypto-program/#:~:text=The%20source%20told%20Nairametrics%20in,restriction%20is%20on%20bank%20transfers." target="_blank" rel="noopener noreferrer nofollow">laid out</a> Gambaryan’s release as one of the two conditions that must be met before the exchange considers applying for registration under Nigeria’s Securities and Exchange Commission. The other condition is settling with the Nigerian government, which <a href="https://crypto.news/nigeria-reportedly-requested-data-from-binance-on-its-top-100-largest-customers-following-executives-arrest/" target="_blank" rel="noopener noreferrer nofollow">accuses</a> Binance of tax evasion, money laundering, and foreign exchange contraventions.
“We are pleased that Nigeria is making progress in the development of its digital assets regime. We hope that someday soon, once Tigran has been freed and our issues are settled, we may seek registration,” the unnamed spokesperson said.
Binance’s stance came as Nigeria is aiming to <a href="https://crypto.news/nigeria-gives-vasps-30-day-ultimatum-to-comply-with-new-rules/" target="_blank" rel="noopener noreferrer nofollow">bring more structure</a> and oversight to the growing digital asset market. Authorities in Nigeria <a href="https://sec.gov.ng/framework-on-accelerated-regulatory-incubation-program-arip-for-the-onboarding-of-virtual-assets-service-providers-vasps/" target="_blank" rel="noopener noreferrer nofollow">amended</a> the nation’s regulations regarding Digital Asset Issuance, Offering Platforms, Exchange and Custody, in June, and introduced a special compliance program dubbed the Accelerated Regulatory Incubation Programme.
ARIP aims to onboard existing Virtual Asset Service Providers into the regulatory framework by offering “Approval-in-Principle” as a precursor to full licensing. One key requirement under these new regulations is for VASPs, including Binance, to open an office in Nigeria to come under the SEC’s oversight.
Last month, the SEC <a href="https://nairametrics.com/2024/08/29/sec-approves-quidax-and-busha-as-legally-recognised-crypto-exchanges-in-nigeria/" target="_blank" rel="noopener noreferrer nofollow">greenlighted</a> two crypto exchanges, Quidax and Busha under the new scheme, but Binance appears reluctant.
An SEC spokesperson pointed out that many Nigerians still use Binance despite <a href="https://crypto.news/binance-leaves-nigeria-suspending-all-naira-services/" target="_blank" rel="noopener noreferrer nofollow">restrictions</a> on bank transfers, which is why the exchange is “not coming to register.”
However, the SEC insider noted that the exchange must register in the long run, echoing comments by SEC Director Abdulkadir Abbas, who reiterated that all cryptocurrency platforms must comply with the ARIP framework to operate lawfully.
Another source close to the matter implied that Binance believes the ARIP framework was thrown together too quickly after its executives were arrested and it lacks backing from the National Assembly.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/binance-fires-back-at-wazirx-over-control-claims/"> Binance fires back at WazirX over control claims </a>
<h2 class="wp-block-heading" id="gambaryan-s-detention">Gambaryan’s detention</h2>
Two Binance employees, Gambaryan, head of financial crime compliance, and Nadeem Anjarwalla were <a href="https://crypto.news/binance-requests-release-of-detained-employee-in-nigeria/" target="_blank" rel="noopener noreferrer nofollow">arrested</a> on money laundering and tax evasion charges during the duo’s visit to Nigeria for meetings with government officials regarding Binance’s operations in the country.
Anjarwalla managed to escape detention and flee to Kenya, which led to stricter measures imposed on Gambaryan. Tax evasion charges against Gambaryan were <a href="https://crypto.news/nigeria-drops-tax-charges-against-binance-executives/" target="_blank" rel="noopener noreferrer nofollow">dropped</a>, but the exec remains detained in Kuje prison on money laundering accusations.
During his time Gambaryan suffered from health issues including a herniated disk that forced him to <a href="https://crypto.news/bail-for-detained-binance-exec-opposed-in-nigeria/" target="_blank" rel="noopener noreferrer nofollow">resort to crutches</a> during his appearance in court where he was allegedly denied a wheelchair. Among other complications, he has been battling Pneumonia, Malaria, and Tonsillitis with medical reports suggesting he needs surgery.
As previously <a href="https://crypto.news/us-pressuring-nigeria-to-release-binances-gambaryan/" target="_blank" rel="noopener noreferrer nofollow">reported</a> by crypto.news, some members of the U.S. government have privately met with several Nigerian government officials including the nation’s president, advocating for Gambaryan’s release, as the prolonged detention has strained U.S. – Nigeria relations.
The development followed calls from <a href="https://crypto.news/binance-exec-denied-legal-counsel-as-health-declines/" target="_blank" rel="noopener noreferrer nofollow">Gambrayan’s family</a>, Binance CEO <a href="https://crypto.news/binance-calls-for-us-intervention-as-tigran-gambaryans-detention-marks-6-months/" target="_blank" rel="noopener noreferrer nofollow">Richard Teng</a> and several <a href="https://crypto.news/u-s-lawmakers-visit-imprisoned-binance-executive-in-nigeria/" target="_blank" rel="noopener noreferrer nofollow">U.S. diplomats</a> who have requested the exec’s release on medical grounds.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/former-binance-ceo-changpeng-zhao-to-be-released-from-u-s-prison/"> Former Binance CEO Changpeng Zhao to be released from U.S. prison </a>

Binance to hold off Nigerian licensing until Gambaryan is freed

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