Binance has declared that it will not consider complying with Nigeria’s digital asset regulations until their detained executive Tigran Gambaryan is released from custody.
Binance’s Conditions
Binance has outlined its stance on adhering to the new regulations introduced by Nigeria’s Securities and Exchange Commission (SEC). The company has set two conditions before applying for registration under this framework: * **Release of Tigran Gambaryan**: Binance insists that Gambaryan must be released before they consider registration. * **Settlement with the Nigerian Government**: Binance also demands resolving disputes with Nigerian authorities, including allegations of tax evasion, money laundering, and foreign exchange contraventions.
ARIP Framework
The Accelerated Regulatory Incubation Programme (ARIP), introduced by Nigeria's SEC, aims to regulate virtual asset service providers. The program offers 'Approval-in-Principle' as a precursor to full licensing and requires the establishment of a local office. Earlier this year, Nigeria’s SEC granted approval to two crypto exchanges, Quidax and Busha, under this scheme. However, Binance has not yet complied with these regulations.
Legal Disputes and Diplomatic Efforts
Tigran Gambaryan, a former U.S. law enforcement officer, was arrested in Nigeria earlier this year. His detention has become a central issue 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 also got involved, with Secretary of State Antony Blinken and other officials advocating for Gambaryan's release. The situation has led to increased tensions, with concerns that prolonged detention could strain U.S.-Nigeria relations.
Binance insists on meeting its conditions before joining Nigeria’s ARIP framework, demanding the release of Tigran Gambaryan and resolving legal issues with Nigerian authorities.
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