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. The government’s actions have divided opinions within the crypto community, with some supporting the request and others opposing it.
In interviews with Cointelegraph, local crypto stakeholders have expressed their views on the matter. Crypto analyst Rume Ophi believes that the government is justified in making such requests, as they are typical in investigations related to national security.
However, not everyone agrees with Ophi’s opinion. Chukwumaeze Dike, a crypto enthusiast and cybersecurity specialist, 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 informed Binance users about the specific terms for disclosing such information through the company’s Government Law Enforcement Request System.
According to Binance’s system, user information may be shared 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 particularly the case when the company is compelled to do so by a subpoena, court order, search warrant, or seizure warrant.
In addition to the request for information about the top 100 users, Nigerian authorities have also asked Binance to provide its transaction history for the past six months. This is part of an ongoing crackdown on the exchange.
Nathaniel Luz, the CEO of Flincap, a liquidity platform for crypto exchanges, believes that the Nigerian authorities are seeking the list of the top 100 Nigerian peer-to-peer traders on Binance to investigate any potential market manipulation of the Nigerian naira/United States dollar exchange rate on the platform. This information would also include the trades conducted by these individuals.
Bayo Onanuga, the presidential adviser on information and strategy, has argued that platforms like Binance have manipulated the naira and caused a significant decline in the local fiat currency. He has even suggested banning platforms like Binance in the country.
Nigeria has emerged as one of the world’s fastest-growing crypto economies in recent years and is the second-largest economy in terms of crypto adoption. In August 2022, Nigeria was recognized as the most crypto-obsessed country based on the number of Google searches for “cryptocurrency” or “buy crypto.”
Magazine:
Bitcoin reaches new record highs, SEC delays options decision, and stablecoin bill looms: Hodler’s Digest, March 3-9