Nigerian cryptocurrency stakeholders are sharing their perspectives on the government’s request for Binance to disclose information about its top 100 users in the country. This request comes as part of a crackdown on the exchange. Opinions within the crypto community are divided, with some supporting the government’s actions and others disagreeing.
In interviews with Cointelegraph, local crypto stakeholders have expressed their opinions on the matter. Crypto analyst Rume Ophi believes that the government is justified in making such requests when investigating national security matters.
However, other local crypto enthusiasts, like Chukwumaeze Dike, a cybersecurity specialist and crypto enthusiast, disagree with Ophi’s viewpoint. Dike finds the request for information about the top 100 users surprising and doubts that Binance will comply.
On the other hand, Nigerian finance professional Olumide Adesina has taken to social media to inform Binance users about the specific terms for disclosing such information through the company’s Government Law Enforcement Request System.
According to Binance’s Government Law Enforcement Request System, the exchange may share user information with courts, law enforcement authorities, regulators, attorneys, or other third parties to comply with laws and respond to law enforcement and regulatory requests. This is especially true when the exchange is compelled to do so by a subpoena, court order, search warrant, or seizure warrant.
Nigeria is reportedly pressuring Binance to provide information about its top 100 users as part of an ongoing crackdown. Additionally, Nigerian authorities have requested Binance’s transaction history for the past six months.
Nathaniel Luz, the CEO of Flincap, a liquidity platform for crypto exchanges, suggests that the Nigerian authorities are seeking the list of the top 100 Nigerian peer-to-peer traders on Binance to determine if there has been any market manipulation of the Nigerian naira/United States dollar exchange rate on the platform. This information would also include details of the trades conducted by these individuals.
Bayo Onanuga, the presidential adviser on information and strategy, argues that Binance and other crypto platforms have manipulated the naira, leading to a significant decline in the local fiat currency. He also suggests banning platforms like Binance in the country.
Nigeria has emerged as one of the fastest-growing crypto economies globally in recent years and is the second-largest crypto adopter in the world as of 2023. In August 2022, Nigeria was named the most crypto-obsessed country based on the number of Google searches for “cryptocurrency” or “buy crypto.”
Magazine: Bitcoin reaches new highs, SEC delays options decision, and a stablecoin bill looms: Hodler’s Digest, March 3-9.