The Nigerian government has reportedly requested Binance, a popular cryptocurrency exchange, to provide information on its top 100 users in the country as part of an ongoing crackdown.

In addition to the top 100 users, Nigerian authorities have asked Binance to share transaction history for the past six months, according to a report by the Financial Times.

The office of Nigeria’s national security adviser has also urged Binance to settle any outstanding tax obligations.

The government argues that Binance’s operations have had a significant impact on the local currency, the Nigerian naira. Presidential adviser Bayo Onanuga claimed that Binance and other crypto platforms have manipulated the naira, leading to a sharp decline in its value. He even suggested banning such platforms in the country.

In response to negotiations with Nigerian authorities, two senior Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained. Despite Binance delisting naira transactions and stopping peer-to-peer transactions, the executives remain in custody.

Onanuga mentioned that the detained executives are cooperating with Nigerian authorities and providing valuable information. Nigeria may consider imposing a hefty fine of $10 billion as a consequence of the alleged economic disruption caused by Binance.

Binance has not commented on the allegations made by Nigerian authorities. The exchange clarified that it did not exit Nigeria but simply removed naira trading pairs and transactions.

Nigeria has seen rapid growth in its crypto economy and ranks as the second-biggest country in terms of crypto adoption. In August 2022, Nigeria was named the most crypto-obsessed country based on Google search trends for cryptocurrency-related terms.

In recent years, Nigeria abandoned its currency peg and allowed the naira to float freely, leading to record-high inflation. As of January 2024, consumer inflation in Nigeria has risen for the 13th consecutive month, reaching nearly 30%.

The situation with Binance in Nigeria has raised concerns within the local crypto community. Some users fear that Binance’s decision to cease naira-related services indicates a withdrawal from the Nigerian market.

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