Binance to hold off Nigerian licensing until Gambaryan is freed

Binance will not consider complying with Nigeria’s digital asset regulations until its detained executive Tigran Gambaryan is released.

Speaking to Nairametrics, a Binance spokesperson listed Gambaryan’s release as one of two conditions that must be met before the exchange can consider applying for registration with the Nigerian Securities and Exchange Commission. The other condition is to settle with the Nigerian government, which has accused Binance of tax evasion, money laundering and foreign exchange violations.

“We are pleased that Nigeria is making progress in developing its digital asset regime. Once Tigran is released and our issues are resolved, we hope to be able to request registration soon,” the spokesperson said, speaking on condition of anonymity.

Binance’s stance comes as Nigeria aims to bring more structure and oversight to its growing digital asset market. In June, authorities in Nigeria amended national regulations on Digital Asset Issuance, Offering Platforms, Exchanges and Custody and launched a special compliance program called the Accelerated Regulatory Incubation Program.

ARIP aims to bring existing Virtual Asset Service Providers into the regulatory framework by offering “Approval in Principle” as a precursor to full licensing. One of the key requirements under these new regulations is for VASPs, including Binance, to open an office in Nigeria to come under the supervision of the SEC.

Last month, the SEC gave the green light to two cryptocurrency exchanges, Quidax and Busha, under the new plan, but Binance appears reluctant.

The SEC spokesperson noted that despite restrictions on bank transfers, many Nigerians still use Binance and therefore the exchange “has not come to register.”

However, the SEC official stated that the exchange should register in the long term, echoing comments by SEC Director Abdulkadir Abbas who reiterated that all cryptocurrency platforms must comply with the ARIP framework in order to operate legally.

Another source familiar with the matter hinted that Binance believes the ARIP framework was created too quickly following the arrest of its executives, and lacked the support of the National Assembly.

Gambaryan’s detention

Two employees, Gambaryan and Nadeem Anjarwalla, Binance’s head of financial crimes compliance, were arrested on charges of money laundering and tax evasion during a visit to Nigeria to meet with government officials about Binance’s operations in the country.

Anjarwalla managed to escape custody and fled to Kenya, leading to tougher measures being imposed on Gambaryan. Tax evasion charges against Gambaryan were dropped, but the executive remains in Kuje prison on money laundering charges.

Gambaryan has suffered from health issues including a herniated disc which has left him resorting to crutches after he claimed in court that he was not given a wheelchair. He is battling Pneumonia, Malaria and Tonsillitis, among other complications, for which medical reports show he will need surgery.

As crypto.news previously reported, some members of the US government have privately met with multiple Nigerian government officials, including the country’s president, advocating for Gambaryan’s release as his prolonged detention has strained US-Nigeria relations.

The development came after Gambrayan’s family, Binance CEO Richard Teng, and several US diplomats demanded the executive’s release on medical grounds.