The cryptocurrency trading platform and Wallet Exchange Binance have outlined two conditions to be met before it can consider registering under Nigeria’s Securities and Exchange Commission’s (SEC) framework program for onboarding Virtual Assets Service Providers (VASPs), including crypto platforms.
Binance’s position is in response to the regulatory frameworks set out for cryptocurrency platforms by Nigeria’s regulatory body, SEC, which includes opening an office in Nigeria.
The SEC’s framework applies to virtual asset service providers and token issuers conducting business in Nigeria or offering services to Nigerian consumers, including platforms that facilitate the offering, trading, exchange, custody, and transfer of virtual/digital assets.
We have reported that the SEC granted an Approval-in-Principle to two crypto exchanges, Quidax and Busha, giving them the status of legally recognized crypto trading platforms in the Program.
Through ARIP, the SEC has opened the door for cryptocurrency platforms to come under the federal government’s regulatory purview, considering tax obligations and other pertinent national security issues.
A Binance spokesperson reported in an exclusive interview that two conditions must be met before it may consider joining ARIP.
Here are the conditions:
Release of Detained Binance Executive, Tigran Gambaryan: Binance believes that its executive must be released from Nigerian custody before it can explore joining ARIP.
Settlement with the Nigerian Government: Recall that Nigeria’s Minister of Information, Idris Mohammed, had accused Binance of having a turnover of over $20 billion in Nigeria in 2023 alone, without paying taxes.
The federal government has already commenced prosecution of Binance on the grounds of tax evasion, money laundering, and foreign exchange contravention, while the platform denies these allegations.
The spokesperson stressed that until legal and regulatory bottlenecks with Nigerian government authorities are resolved, coming under the SEC’s program is not in view.
Binance yet to register
According to some findings at the SEC, Binance still enjoys significant patronage from Nigerians and does not see the need to comply with the Commission’s onboarding framework, which mandates that all VASPs, including crypto firms, establish an office in Nigeria under ARIP.
The official stated that Nigerians still trade with Binance, but the only restriction is on bank transfers. It was also revealed that, due to ongoing court cases against Binance in Nigeria, the platform has somewhat reduced its influence on Nigerians, although Nigerians still use Binance features through virtual private networks (VPNs) and other means.
The official emphasized that the SEC does not regulate foreign crypto firms, but under its rules, every foreign crypto platform must establish an office in Nigeria so the Commission can supervise them.
The source added that, in the long run, Binance will have to register due to the high number of Nigerians trading on their platform.
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