Binance to Withhold Compliance with Nigeria’s Crypto Regulations Until Executive is Released

Binance to Withhold Compliance with Nigeria’s Crypto Regulations Until Executive is Released

Binance has stated that it will not consider adhering to Nigeria’s digital asset regulations until Tigran Gambaryan, one of its detained executives, is released from custody.

In a conversation with Nairametrics, a Binance spokesperson highlighted that Gambaryan’s freedom is one of two conditions that must be satisfied before the crypto exchange will seek registration under Nigeria’s Securities and Exchange Commission. The second condition involves reaching a settlement with the Nigerian government, which has accused Binance of tax evasion, money laundering, and violations of foreign exchange laws.

“We are encouraged by Nigeria’s progress in developing a regulatory framework for digital assets. We look forward to pursuing registration once Tigran is freed and our outstanding issues are resolved,” said the unnamed spokesperson.

Binance’s position comes at a time when Nigeria is working to establish greater oversight over the expanding digital asset industry. In June, Nigerian authorities revised the nation’s laws related to Digital Asset Issuance, Offering Platforms, Exchange, and Custody. They also introduced the Accelerated Regulatory Incubation Programme (ARIP), a compliance initiative designed to bring existing Virtual Asset Service Providers (VASPs) into the formal regulatory fold.

ARIP grants “Approval-in-Principle” as a first step toward full licensing, with one key requirement being that VASPs, including Binance, establish a local presence in Nigeria to operate under SEC supervision.

Last month, the SEC approved two cryptocurrency exchanges, Quidax and Busha, under the new framework. However, Binance has so far shown reluctance to follow suit.

A SEC representative noted that despite restrictions on bank transfers, many Nigerians still use Binance, which may explain the exchange’s hesitation in registering. Nonetheless, the representative emphasized that Binance will eventually need to comply with the ARIP framework, echoing SEC Director Abdulkadir Abbas’ statements that all cryptocurrency platforms must follow the new regulations to operate legally.

One insider suggested that Binance believes ARIP was hastily implemented after the arrest of its executives and lacks proper legislative backing from the National Assembly.

The Detention of Gambaryan

Gambaryan, who serves as Binance’s head of financial crime compliance, and another Binance employee, Nadeem Anjarwalla, were arrested on charges of tax evasion and money laundering during a visit to Nigeria to meet with government officials about the company’s operations. While Anjarwalla managed to escape detention and flee to Kenya, Gambaryan was not as fortunate and remains in Kuje prison on money laundering charges, despite the tax evasion charges against him being dropped.

During his detention, Gambaryan’s health has deteriorated, suffering from a herniated disk that requires him to use crutches in court. He has also faced numerous other health issues, including pneumonia, malaria, and tonsillitis, with medical reports indicating that he may need surgery. Despite his condition, he was allegedly denied a wheelchair during a court appearance.

In response to his prolonged detention, some U.S. government officials, including diplomats and even Binance’s CEO Richard Teng, have privately lobbied Nigerian officials, including the President, to secure Gambaryan’s release on medical grounds. The case has reportedly strained diplomatic relations between the U.S. and Nigeria.