Binance has suspended its efforts to comply with Nigeria’s digital asset regulations due to the ongoing detention of its executive, Tigran Gambaryan. Gambaryan, Binance’s head of financial crime compliance, was arrested on charges related to money laundering and tax evasion during a business trip to Nigeria.
This arrest, along with pending charges against the company, has prompted Binance to halt its plans to register with Nigeria’s Securities and Exchange Commission (SEC). A Binance spokesperson stated that the platform will only proceed with the licensing process after Gambaryan is released and the company settles its ongoing legal disputes with Nigerian authorities.
This development comes at a time when Nigeria is actively shaping its regulatory framework for digital assets, seeking to attract more Virtual Asset Service Providers (VASPs) under its Accelerated Regulatory Incubation Programme (ARIP). Despite this, Binance remains hesitant, citing the unresolved issues regarding its detained executive and ongoing legal cases.
Nigeria’s Push for Digital Asset Regulation
Nigeria’s SEC introduced new regulations in June 2024 aimed at bringing more oversight to the fast-growing digital asset market. Under the ARIP framework, platforms offering cryptocurrency services must register and open offices in Nigeria to fall under the SEC’s jurisdiction. Recently, two crypto exchanges—Quidax and Busha—were successfully registered under the program, signaling Nigeria’s seriousness in regulating its digital asset space.
However, Binance’s reluctance to comply with these regulations is a significant setback for the Nigerian government’s ambition to be a leader in Africa’s cryptocurrency market. A spokesperson from Nigeria’s SEC acknowledged Binance’s significant presence in the country but stressed the need for the exchange to officially register. The spokesperson stated, “Binance has millions of users in Nigeria, but they must follow the rules if they want to continue operations here legally.”
Impact of Gambaryan’s Arrest on Binance’s Global Operations
Tigran Gambaryan’s detention in Nigeria has had a ripple effect on Binance’s global operations. Gambaryan was initially charged with tax evasion, but those charges were later dropped. However, he remains in custody over money laundering accusations.
His detention has strained relations between Binance and Nigerian authorities, complicating the company’s expansion efforts in the region.
As pressure mounts, Binance’s CEO and U.S. diplomats have appealed for Gambaryan’s release, citing his health issues, including a herniated disk and other medical complications.
While Nigerian authorities have yet to provide a timeline for his release, Binance has made it clear that they will not seek a Nigerian license until this matter is resolved.
Key Takeaways:
- Binance halts Nigerian license application due to the detention of executive Tigran Gambaryan.
- Nigeria’s SEC pushes for VASPs to register under its Accelerated Regulatory Incubation Programme.
- Binance will not pursue compliance with Nigeria’s digital asset regulations until Gambaryan is freed and legal issues are settled.