A senior executive at Binance, who was detained by Nigerian authorities in late February, has since escaped from custody. The executive Nadeem Anjarwalla is believed to have left the country using a Kenyan passport. The Nigerian government confirmed Anjarwalla’s escape and said it would ask Interpol to issue an international arrest warrant. Binance Executive Departs […]
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Notable pro-crypto pressure groups in Kenya and the United States have demanded the release of Binance executives held by the Nigerian government since Feb. 26.
Last month, two Binance executives—Tigran Gambaryan and Nadeem Anjarwalla—traveled to Nigeria to address the ongoing issues surrounding the exchange’s operations in the African country.
However, instead of engaging in constructive dialogues, the Nigerian government detained them without access to their passports.
This week, Kenya’s Blockchain Association met with the Nigerian High Commission and expressed displeasure about the continued detention of Anjarwalla, a dual citizen of Kenya and Britain and the regional manager of Binance Kenya.
According to the association, the Nigerian government’s actions raise concerns about the treatment of individuals engaging in constructive dialogue with the authorities. They added:
“The arbitrary detention of Nadeem Anjarwalla and his colleague not only undermines principles of transparency, due process, and respect for human rights but also jeopardizes the advancement of blockchain technology and innovation in our region.”
As such, the association demands his immediate release and safe return to his home country.
Similarly, the Chamber of Digital Commerce, a US-based pro-crypto group, urged the US government to ensure the immediate release of Gambaryan, a former special agent of the US Internal Revenue Service (IRS) and Binance’s head of financial crime compliance.
According to the group, Gambaryan’s detention “appears to be a state-sponsored kidnapping” and a “flagrant violation of international law.”
Consequently, the group urged the US government to intervene in the case and secure the immediate release of the victims.
Meanwhile, the detained Binance executives could face an extended stay in the African nation as the Nigerian authorities are pushing for another two weeks of detention for the crypto executives.
The matter will be brought before a High Court in the nation’s capital, Abuja, for deliberation on April 5.
Since their detention, the Nigerian authorities have not charged the executives with any crime. However, the government recently got approval to get data on all Nigerian Binance users as part of its investigations into the nation’s foreign exchange challenges.
The post Kenya and US crypto groups unite in demand for release of detained Binance execs in Nigeria appeared first on CryptoSlate.
Binance said Nigeria is not one of its top markets amid recent issues with authorities in the African country.
In a March 13 statement, the exchange revealed its extensive cooperation with local law enforcement agencies to promote the responsible growth of crypto in Nigeria.
Over the past weeks, Binance and the Nigerian authorities have been engaged in an acrimonious dispute over its operations in the region. The conflict reached a boiling point when authorities accused Binance of manipulating the local fiat currency, leading to the detention of two senior executives from the exchange.
The Richard Teng-led crypto platform said, “Nigeria is not yet one of Binance’s top markets.” However, it admitted that the country has “extraordinary potential” and hopes to keep investing in the country.
Binance’s statement is surprising, considering Nigeria is Africa’s most populous country and largest economy. The African country’s young population has propelled its crypto adoption to record highs despite regulatory pushbacks, with Chainalysis ranking the country second on its global crypto adoption index.
Meanwhile, the statement is likely an attempt to challenge Nigerian authorities over their excessive demands. The government recently requested that Binance provide information on the top 100 users in the country.
Besides that, a government spokesperson, Bayo Onanuga, recently suggested that the authorities might impose fines of up to $10 billion on the crypto trading platform.
Although Binance still operates in the country, the exchange has shown it can choose to exit. A few weeks ago, it suspended all Naira-related services on its platform.
Binance highlighted its cooperation with Nigerian law enforcement agencies since June 2020, revealing that it responded to 626 information requests and restricted 281 accounts belonging to Nigerian residents over suspicious activities.
According to the exchange:
“The information we provided helped a vast range of agencies, such as the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and INTERPOL Nigeria to tackle crimes ranging from scams and fraud to money laundering, blackmail, kidnapping, and extortion. “
The exchange also claimed to have organized physical and online training workshops for these law enforcement agencies to ensure the space’s sanctity.
Binance concluded its statement by urging the government to engage with crypto firms with a “proven track record of constructive collaboration” and allow the booming fintech industry to have “harmonious growth” with global players like itself.
The Nigerian Securities and Exchange Commission (SEC) has disclosed plans to introduce new regulations for crypto operators following recent challenges with Binance.
The planned regulation would include licensing, registration, and screening guidelines for digital and virtual asset services providers (VASPs). In addition, the new guideline would ensure that malicious actors are not registered as operators within the Nigerian market.
A local media outlet, citing a Mar. 4 notice from the regulator, reported that the SEC expressed willingness to engage with “genuine” digital asset operators. The notice stated:
“The SEC has also developed a new AML/CFT/CPF AML/CFT/CPF onboarding manual for licensing/registration and on-going screening of Digital and VASP beneficial Owners to ensure that criminals are not registered as operators in the capital market. The SEC is ready to interface with genuine VASPs based on these clear rules and regulations.”
The Commission is also cooperating with the Central Bank of Nigeria to ensure additional rules are included in the upcoming regulations.
The Nigerian SEC has introduced several pro-crypto regulations to allow the industry to operate under its purview. Last year, the regulator said it would allow the tokenization of assets like equities, property, and debt within the jurisdiction.
This proposed regulation follows the Nigerian government’s issues with Binance, the largest crypto exchange by trading volume.
Over the past few weeks, the exchange has been accused of exacerbating Nigerian foreign exchange challenges by arbitrarily fixing the rates and profiting from the situation. As a result, the authorities blocked access to its official website and arrested two of its executives. In addition, the government is reportedly considering a $10 billion fine from the crypto platform.
In response, Binance discontinued all its services associated with the naira, the country’s national currency, while promising to cooperate with the authorities in their investigations.
The post Nigeria to tighten crypto regulation in wake of Binance disputes appeared first on CryptoSlate.
The Central Bank of Nigeria (CBN) has lifted the ban on cryptocurrency transactions in the country in a significant reversal of its previous stance.
The change was announced through a circular on Dec. 22. It allows Nigerian banks and other financial institutions to resume operations with cryptocurrency service providers.
The initial ban, imposed in February 2021, was primarily enacted over concerns related to money laundering and terrorism financing risks associated with crypto assets.
Under the new guidelines, financial institutions are now allowed to open accounts for businesses dealing in virtual/digital assets, but these accounts must be specifically designated for that purpose.
Banks and other financial institutions must comply with the requirements outlined in the CBN’s guidelines when dealing with accounts for crypto-related businesses. Meanwhile, Virtual Asset Service Providers (VASPs) involved in the crypto business are required to be licensed by the Nigerian Securities and Exchange Commission.
While they can facilitate transactions for VASPs, banks, and financial institutions are still barred from trading, holding, or transacting in cryptocurrencies on their own accounts.
The lifting of the ban is expected to significantly impact the Nigerian financial landscape, given the country’s young, tech-savvy population that has shown a keen interest in cryptocurrencies.
According to a report by Chainalysis, the volume of crypto transactions in Nigeria grew by 9% year-over-year to $56.7 billion between July 2022 and June 2023.
While the lifting of the ban opens up opportunities, it also presents challenges in ensuring compliance with international standards for preventing illegal activities. It underscores the need for a balanced approach that encourages innovation while safeguarding against risks.
Nigeria’s decision aligns with global shifts towards recognizing and regulating cryptocurrencies rather than outright banning them. This reflects an increasing acknowledgment of the potential of digital assets and the need for comprehensive regulatory frameworks.
The Securities and Exchange Commission in Nigeria issued rules in May 2022 to provide a regulatory framework for digital assets and VASPs.
The CBN’s guidelines are in line with international recommendations, such as those from the Financial Action Task Force (FATF), to regulate the use of virtual assets.
The FATF updated its guidelines in 2018, emphasizing the regulation of VASPs to prevent the misuse of virtual assets for money laundering and terrorism financing.
The new rules represent a significant step in acknowledging and integrating cryptocurrencies into Nigeria’s financial system, balancing the need for innovation in digital assets with regulatory oversight to ensure security and compliance.
Nigeria is extending an invitation to scientists of Nigerian heritage, as well as globally renowned experts who have worked within the Nigerian market, to collaborate in the formulation of its National Artificial Intelligence (AI) Strategy.
According to Bosun Tijani, the Minister of Communications, Innovation and Digital Economy, who made the announcement on X (formerly Twitter), the National Information Technology Development Agency (NITDA) has initiated the development of a National AI Strategy.
The action will impact the way the government formulates new technological solutions for its critical national challenges. As a result, the government is broadening its co-creation strategy by assembling a selection of leading AI researchers with Nigerian heritage from around the world.
The Nigerian government recognizes that AI has developed into a versatile technology, reshaping production and services and holds immense potential for influencing societal progress and economic expansion.
We’re curating a list of the top researchers of Nigerian descent from all over the world to join us in co-creating a National AI Strategy. The strategy will help shape our approach to building innovative tech solutions to our most pressing national problems…1/2 pic.twitter.com/6JpPPps3oy
— Dr. ‘Bosun Tijani (@bosuntijani) August 28, 2023
According to a PricewaterhouseCoopers study, artificial Intelligence could contribute $15.7 trillion to the global economy by 2030, with approximately $3 trillion attributed to enhanced productivity and $9.1 trillion arising from novel goods and services.
According to a white paper titled “Co-creating a National Artificial Intelligence Strategy for Nigeria,” which is referenced in the minister’s post, a sophisticated method was used to pinpoint accomplished AI researchers with Nigerian roots, using global AI publication data and advanced machine learning models.
Similar to the “h-index,” a research index was created to locate influential AI researchers of Nigerian heritage. As the preliminary research phase concludes, the Nigerian government seeks public involvement, acknowledging the potential for errors and aiming to tap into collective knowledge and insights.
Related: Nigerian crypto exchange’s token launch draws scrutiny
Reports from local media indicate that Kashifu Inuwa, the director-general of NITDA, has revealed intentions to establish communities of AI developers nationwide to influence the country’s technological future. He mentioned that the initiative will commence in three states in 2023, followed by strategic planning for its extension to additional states and, eventually all local government areas.
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