Binance demands release of detained Executive before applying for Nigerian SEC Regulatory Program
Binance has set two requirements before it will consider applying for a license under the Virtual Asset Service Provider (VASP) regulatory framework by the Nigerian Securities and Exchange Commission (SEC).
According to a recent report from Nairametrics, a Binance representative told the news outlet that two requirements need to be fulfilled before it can think about partnering with ARIP.
The exchange stated it will not consider complying with Nigeria's regulations pertaining to digital assets until its detained executive, Tigran Gambaryan, is released from custody. Secondly, the spokesperson said that joining the SEC's program is not in view until legal and regulatory obstacles with Nigerian government agencies are cleared.
The Biance representative during the exclusive interview said that “we are pleased that Nigeria is making progress in the development of its digital asset regime. We hope that someday soon, once Gambaryan has been released from detention and our issues are resolved, we may now apply to register.”
Why Binance is yet to register under the Accelerated Regulatory Incubation Programme (ARIP)
In light of tax obligations and other relevant national security concerns, the SEC has made it possible for cryptocurrency platforms to come under the regulatory jurisdiction of the federal government through ARIP.
Nigerian regulatory body SEC awarded Quidax and Busha an Approval-in-Principle under the Accelerated Regulatory Incubation Programme (ARIP), thereby granting them the status of legally recognized cryptocurrency trading platforms in the country.
Nairametrics said, according to a source at the SEC who chose not to be identified, that numerous VASPs' applications to join the framework are still pending.
In an exclusive chat with Nairametrics, the source said that the SEC expects Binance to register in Nigeria, even though the cryptocurrency exchange company does not see the need because Nigerians already have access to the platform. Bank transfers are the only restriction on trading with Binance for Nigerians, the source added.
The official disclosed that although Nigerians continue to utilize Binance features through virtual private networks (VPNs) and other methods, the platform's impact on the country has somewhat decreased as a result of ongoing legal cases against the exchange in Nigeria.
The official also made it clear that while the SEC does not regulate foreign cryptocurrency companies, its rules require all foreign cryptocurrency platforms to open an office in Nigeria so that the Commission can keep watch on their operation.
Comment from SEC Director regarding Binance demands
Nairametrics also inquired about Binance with SEC Director Abdulkadir Abbas. The SEC's press release on ARIP and its approval of Quidax, Busha, and a few other platforms, he responded, "remains Nigeria's position" for all cryptocurrency platforms looking to operate legally in Nigeria.
Detention of Binance executive Tigran Gambaryan
While on a business trip to meet with government officials in Nigeria, Gambaryan, a prominent Binance executive in charge of financial crime compliance, was taken into custody on suspicion of money laundering. Gambaryan was first charged with tax evasion and money laundering; however, the tax evasion charge was eventually dropped, and he is still being held in Kuje prison for the money laundering offense.
During his detention, Gambaryan has suffered from a number of serious health conditions, including tonsillitis, pneumonia, and malaria. He has also been forced to use crutches due to a herniated disk. Gambaryan's requests for medical care, including a wheelchair during court appearances, have reportedly been denied, despite medical reports indicating he needs surgery.
Binance CEO Teng said an internal task force is working nonstop to secure Gambaryan release from detention. At the Token2049 conference in Singapore on September 19, Teng told Cointelegraph, “Holding our staff is not necessary. He's held unjustly, unfairly.”
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