Binance, the largest crypto exchange by trading volume, has given the Nigeria Securities and Exchange Commission (SEC) two conditions that must be met before the exchange can pursue the Nigerian Virtual Assets Service Providers (VASPs) license.
According to Binance, releasing Tigran Gambaryan, the jailed Binance employee in Nigeria, is one of the conditions for pursuing license registration in Nigeria.
Binance Gave Two Conditions To Nigeria’s SEC Before Pursuing License
An unnamed spokesperson for Binance recently revealed that Nigeria’s Securities and Exchange Commission (SEC) must meet two conditions outlined by the crypto exchange before it applies for license registration under the body’s special framework program for onboarding crypto platforms.
The first condition is releasing Tigran Gambaryan, the detained Binance exec. Binance will not comply with Nigeria’s VASP regulations or join ARIP until its detained exec is freed from custody.
The second condition is settlement with the Nigerian government over tax evasion issues, money laundering, and foreign exchange disputes. Binance was accused by Idris Mohammed, Nigeria’s Minister of Information, of evading tax payment despite having a turnover of more than $20B in 2023 alone.
Nigeria Turn Bullish On Crypto Trading Platforms
Recently, the Nigeria SEC turned a friendly stance towards the growing digital asset market, welcoming crypto trading platforms to come under the regulatory purview of the federal government.
In June, Nigerian Authorities made amendments to the country’s regulations that relate to the issuance of digital assets, crypto trading platforms, and crypto exchanges and custody, introducing a special compliance initiative called the Accelerated Regulatory Incubation Program (ARIP).
ARIP is tasked with issuing “Approval-in-Principle” to existing VASPs, including crypto exchanges, to onboard them into the country’s regulatory framework before they are fully licensed.
Under this new regulatory framework, a critical requirement for VASPs is to open an office in Nigeria, which will be under the supervision of the SEC.
Abdulkadir Abbas, Director of Nigeria SEC, emphasized that all VASPs and crypto platforms must comply with the ARIP regulatory frameworks to operate lawfully in the country. Some crypto platforms already complied with these new regulations.
BTCRepublic previously reported that the Nigeria SEC approved two cryptocurrency platforms, Quidax and Busha, to operate legally in the country under ARIP.
In response, Binance gave the Nigeria SEC two conditions that must be met before it may consider registering under ARIP.
Binance Not Likely To Register Under ARIP
A spokesperson for Nigeria SEC mentioned that a large number of Nigerians are still using Binance despite the ban on the crypto exchange and restrictions on bank-crypto transactions. He added that for this reason, the Binance exchange may “not come to register.”
However, an insider stated that whether the Binance crypto exchange likes it or not, it “must register in the long run,” citing Abdulkadir Abbas.
Another insider mentioned that Binance knows that the ARIP regulatory frameworks were formulated too fast after its execs were arrested and lacked backing from the National Assembly.
