AGS NEWS – The Federal Government has reportedly detained at least two top executives of Binance, a cryptocurrency exchange platform.

According to the Financial Times, these executives were apprehended upon their arrival in Nigeria following a ban on their website.

Officials from the office of the National Security Adviser carried out the arrests and seized their passports.

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Binance is an online platform enabling users to trade cryptocurrencies. Nigeria ranks among the largest peer-to-peer crypto markets globally, with transactions amounting to $56.7 billion between July 2022 and June 2023, as per Chainalysis data.

The arrests occurred amidst government efforts to curb speculation on the naira by clamping down on cryptocurrency exchanges.

Recently, the Nigerian Communications Commission blocked online platforms of Binance and other crypto firms to prevent what it deemed as manipulation of the forex market and illicit fund movements.

During a press briefing, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, highlighted concerns over suspicious financial flows through crypto platforms.

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He specifically mentioned Binance, citing $26 billion passing through Binance Nigeria within a year from unidentifiable sources and users.

In June 2023, the Securities and Exchange Commission declared the operation of Binance Nigeria Limited illegal.

Presidential Special Adviser Bayo Onanuga indicated support for actions against Binance, expressing concerns over its potential impact on Nigeria’s economy.

Efforts to reach confirmation from the Office of the National Security Adviser were unsuccessful.

However, Onanuga emphasized the need to cease patronage of the parallel market for FX rates, advocating for the use of the CBN’s official platform.

He suggested that stabilizing the exchange rate would normalize prices and improve the country’s economic outlook.