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Nigerian High Court Ordered Binance To Provide User Data Amidst Allegations Of Criminal Activities
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Nigerian High Court Ordered Binance To Provide User Data Amidst Allegations Of Criminal Activities

  • The Nigerian high court has ordered Binance to hand over user data due to allegations of criminal activity.
  • EFCC accuses Binance of money laundering and terrorism financing, impacting the country’s economy.
  • Binance urged dialogue with the Nigerian government amid calls for regulatory action.

In a recent legal development, the Nigerian High Court has issued a directive to Binance Holdings, a prominent cryptocurrency exchange platform, to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive data about Nigerian users trading on its platform. 

This directive stems from an interim ruling by Justice Emeka Nwite on February 29, following an ex parte motion filed against Binance by the EFCC.

Allegations Of Criminality And Money Laundering

The motion, presented by the EFCC’s legal representative, Ekele Iheanacho, alleged that Binance’s operations within Nigeria exhibit elements of criminality. 

Citing sections of relevant legislation, including the EFCC Act of 2004 and the Money Laundering (Prevention and Prohibition) Act of 2022, the agency emphasized the obligation to report suspicious transactions to authorities, with penalties for non-compliance.

See Also: Nigeria’s SEC Proposes New Rule For Virtual Asset Service Providers (VASPs)

An affidavit submitted by EFCC operative Hamma Bello underscored the Commission’s need to conclude its ongoing investigation following intelligence suggesting involvement in money laundering and terrorism financing through the Binance platform. 

Bello highlighted instances of illicit activities such as price manipulation and market distortions, purportedly leading to adverse effects on the Nigerian economy.

Response From Binance And Government Officials

Amidst these allegations, voices from both sides have emerged.

Nathaniel Luz, CEO of Flincap, emphasized the potential benefits of dialogue between Binance and the Nigerian government. 

Luz suggested a roundtable conversation to address the concerns raised, portraying it as a constructive approach to resolving the matter.

Conversely, Bayo Onanuga, presidential adviser on information and strategy, voiced concerns over the impact of crypto platforms on the naira’s stability. 

Onanuga attributed a decline in the local fiat currency to alleged manipulative practices by platforms like Binance, advocating for regulatory measures, including the potential banning of such platforms within the country.

Nigeria’s Crypto Landscape And Economic Significance

Nigeria has emerged as a notable player in the global cryptocurrency market, experiencing rapid growth in recent years. 

Ranked as the second-largest economy in crypto adoption in 2023, the country has witnessed a surge in crypto-related activities, underscoring its significance in the digital currency ecosystem.

As the legal proceedings unfold, the directive issued by the Nigerian High Court marks a significant development in the relationship between Binance and Nigerian authorities. 

With allegations of criminality and money laundering at the forefront, the outcome of this case has implications not only for Binance but also for the broader cryptocurrency landscape within Nigeria. 

As stakeholders on both sides navigate these challenges, the need for dialogue and regulatory clarity remains paramount to ensure the integrity and stability of Nigeria’s evolving crypto economy.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

 

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