Binance Demands Release of Executive Before Meeting Nigerian Crypto Regulations: Report

Binance declared that it will not consider complying with Nigeria’s digital asset regulations until Tigran Gambaryan, its detained executive, is released from custody, according to a recent report from Nigerian media outlet, Nairametrics. 

Binance’s position comes as Nigeria’s Securities and Exchange Commission (SEC) has introduced a new regulatory framework aimed at integrating cryptocurrency platforms into the country’s financial oversight. 

This framework, known as the Accelerated Regulatory Incubation Programme (ARIP), requires virtual asset service providers (VASPs) to open offices in Nigeria and adhere to specific regulations.

In an exclusive interview with Nairametrics, a Binance spokesperson explained that compliance with these regulations is contingent upon resolving legal issues in Nigeria. 

The spokesperson outlined two conditions that must be fulfilled:

• Release of Tigran Gambaryan: Binance insists that Gambaryan, who has been detained in Nigeria, must be released before the company can consider applying for registration under the SEC’s framework. 

• Settlement with the Nigerian Government: Binance also demands a resolution of its disputes with Nigerian authorities, which include allegations of tax evasion, money laundering, and foreign exchange contraventions. The Nigerian government has accused Binance of failing to pay taxes on substantial turnover in the country.

ARIP Framework and Its Impact

The ARIP framework, introduced by the SEC, aims to regulate VASPs and token issuers operating in Nigeria. It offers an “Approval-in-Principle” as a precursor to full licensing, with a key requirement being the establishment of a local office. 

Earlier this year, the SEC granted approval to two crypto exchanges, Quidax and Busha, under this new scheme. 

However, Binance has not yet complied with these regulations. According to Nairametrics, a SEC spokesperson said Binance has been reluctant to register. This is partly due to Nigerians still having access to Binance's platform,  albeit with restrictions on bank transfers.

Ongoing Legal Disputes and Diplomatic Efforts

Gambaryan, a former U.S. law enforcement officer, was arrested in Nigeria earlier this year. His detention has become a focal point in the diplomatic relationship between the U.S. and Nigeria.

Binance CEO Richard Teng has publicly criticized Gambaryan’s detention, describing it as unjust and detrimental to his health. Teng has called for Gambaryan’s release on humanitarian grounds and highlighted the ongoing diplomatic efforts by U.S. officials to secure his freedom. 

The Binance CEO also indicated that Binance is exploring various avenues, including legal and political efforts, to secure Gambaryan’s release.

The U.S. government has also been involved, with Secretary of State Antony J. Blinken and other officials advocating for Gambaryan’s release. The situation has led to heightened tensions, with concerns that the prolonged detention could strain relations between the U.S. and Nigeria.