Nigeria’s High Court has issued a directive to Binance Holdings, instructing them to furnish the Economic and Financial Crimes Commission (EFCC) with extensive data and information pertaining to all Nigerian traders on their platform. Justice Emeka Nwite issued this interim ruling on February 29 following an ex parte motion filed by the EFCC against the cryptocurrency trading platform, as reported by local news outlet SaharaReporters.
In an ex parte motion, only one party is present, and the defense receives no prior notice, thus preventing them from presenting their arguments. Representing the anti-corruption agency, lawyer Ekele Iheanacho argued that Binance's activities in Nigeria exhibited criminal elements, potentially violating pertinent legislation such as Section 38 of the EFCC Act, 2004, and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022.
The EFCC, through staff member Hamma Bello, conveyed in an affidavit that they required comprehensive data from Binance to conclude their ongoing investigation into suspected money laundering and terrorism financing on the platform. Bello noted concerns about users utilizing cryptocurrency platforms for illicit activities like market manipulation, resulting in distortions in the foreign exchange market and contributing to the devaluation of the naira and other currencies.
Amidst these allegations, there have been discussions on the potential delisting of the naira from the Binance exchange due to the adverse impact of these activities on the Nigerian economy. Nathaniel Luz, CEO of cryptocurrency exchange liquidity platform Flincap, highlighted the importance of dialogue between Binance and the Nigerian government to address these issues effectively.
Presidential Adviser on Information and Strategy Bayo Onanuga expressed concerns about the manipulation of the naira by platforms like Binance, suggesting a possible ban on such platforms in the country. Despite Nigeria's burgeoning crypto economy, concerns about regulatory compliance and potential economic repercussions have prompted calls for decisive action from authorities.
