- Binance's Registration Requirements
- Impact of the ARIP Framework
- Ongoing Legal Disputes and Diplomatic Efforts
Binance has declared that it will not consider complying with Nigeria's new digital asset regulations until its detained executive, Tigran Gambaryan, is released from custody.
Binance's Registration Requirements
Binance's position comes in response to Nigeria's Securities and Exchange Commission (SEC) introducing 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.
Impact of the ARIP Framework
The ARIP framework 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, partly because Nigerians still have 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. 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.
The situation with Binance in Nigeria remains complex and requires further legal and diplomatic efforts for resolution. Meeting the conditions set by the company could be the key to starting the process of integrating into Nigeria's new regulatory framework.
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