Due to Naira (Nigeria’s currency) speculation, Nigeria has stepped up its efforts by focusing on cryptocurrency exchanges and arresting two top Binance officials. These executives visited Nigeria following the country’s recent ban on some crypto trading platforms.
Nigeria’s Currency (Naira) Rapid Loss in Value
Reports suggest that officials from the national security adviser’s office seized their passports and detained them, but neither the adviser’s office nor Binance has released any statements about the incident.
The Naira’s fast devaluation, which led to a striking inflation rate of 29.9%, has made authorities scrutinize cryptocurrency platforms closely.
These platforms are used for trading, and set unofficial exchange rates for the Nigerian currency, drawing more regulatory attention from government authorities.
After its senior executives were detained, Binance decided to cease trading the Naira against Bitcoin and Tether coins on its platform.
Planned Collaboration to Probe Cryptocurrency Exchange Platforms
Olayemi Cardoso, the governor of Nigeria’s Central Bank, referenced Binance during a press conference about fund flow across cryptocurrency exchanges on Tuesday. Expressing concerns over signs of illicit money transfers through these platforms, Cardoso described transactions on Binance Nigeria, totaling $26 billion in a year, as originating from sources and users that are difficult to identify.
The anti-corruption agency, the police, and the national security adviser are working together to investigate cryptocurrency exchanges. A trustworthy insider disclosed that authorities plan to collect a complete list of all Nigerians who have used Binance from the beginning.
These users will assist authorities in obtaining enough proof to prosecute the alleged culprits. Moreover, the investigating authorities stated that they are willing to aid the victims if feasible.
