Binance Discloses Cooperation with Nigerian Authorities Amid Turmoil

In a recent blog post on March 13, crypto exchange Binance revealed its extensive collaboration with Nigerian authorities amidst ongoing challenges with its operations in the country.

The relationship between Binance and Nigerian authorities took a different turn in recent months. Back in August 2023, the exchange conducted comprehensive training sessions with officials from the Economic and Financial Crimes Commission (EFCC) in Abuja and Lagos. These sessions, attended by over 30 investigators each, focused on teaching the investigators how to trace money on the blockchain using various tools. The feedback from Nigerian investigators was positive, indicating a keen interest in continuing this cooperation format.

Additionally, Binance responded to 626 information requests from Nigerian law enforcement agencies between June 2020 and February 2024, with an average response time of 37.4 hours. The exchange supported investigations from the Nigeria Police Force, EFCC, and INTERPOL Nigeria.

The blog post from Binance was in response to allegations from the local government accusing the company of manipulating the national currency, the Nigerian naira (NGN), and contributing to the country’s economic challenges. The government called for a ban on all crypto exchanges operating in Nigeria.

The Central Bank of Nigeria (CBN) also raised concerns about suspicious financial flows through Binance, citing an estimated $26 billion passing through Binance Nigeria from unknown users and sources in 2023. This scrutiny led to significant changes in Binance’s relationship with the local government, resulting in the detention of two senior executives on Feb. 26. Binance also removed all Nigerian Naira trading pairs from its peer-to-peer service as part of the crackdown.

Nigeria is known as one of the fastest-growing crypto economies globally, ranking second in global crypto adoption in 2023. However, the naira faced challenges last year due to economic instability and low investor confidence. The currency experienced a 36% decline on the official market in June 2023 following the removal of trading restrictions by President Bola Tinubu and the suspension of Nigeria’s central bank governor, Godwin Emefiele.

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