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Binance, the world’s largest cryptocurrency trading platform, has outlined two key conditions that must be met before it considers registering under Nigeria’s Securities and Exchange Commission’s (SEC) special framework program. This program is aimed at onboarding Virtual Assets Service Providers (VASPs), which include cryptocurrency platforms.

Binance insists that its executive, Tigran Gambaryan, who has been detained by Nigerian authorities over alleged foreign exchange manipulation, must be released before the platform can consider registering.

Gambaryan’s arrest has sparked significant controversy, with accusations of money laundering and tax evasion directed at Binance by Nigerian officials.

The platform is also calling for a resolution of its ongoing legal and regulatory disputes with Nigerian authorities. Binance has been accused of generating over $20 billion in revenue in Nigeria in 2023 alone without paying the required taxes.

The federal government has initiated prosecution against the exchange on charges of tax evasion, money laundering, and foreign exchange violations. Binance has denied these allegations, but until these legal issues are resolved, the platform says it will not register under Nigeria’s regulatory framework.

A Binance spokesperson emphasized the platform’s commitment to adhering to local regulations once these conditions are met. “We are pleased that Nigeria is making progress in the development of its digital assets regime. We hope that someday soon, once Tigran has been freed and our issues are settled, we may seek registration,” the spokesperson stated in an interview.

According to a source within Nigeria’s SEC, Binance continues to enjoy significant patronage from Nigerian users, even though it has not registered under the SEC’s framework.

The source, who spoke anonymously, mentioned that Binance does not see the need to register since Nigerians already have access to its platform via virtual private networks (VPNs) and other methods. However, the SEC has reiterated that every foreign crypto platform must establish an office in Nigeria to come under its supervision.

“Binance is not regulated by the SEC in Nigeria. That is why we are trying to make them register, but they say they don’t need to register because Nigerians already have access to their platform. That is why they are not coming to register. They see no need,” the source added.

Despite the ongoing legal battles and regulatory pressure, the SEC anticipates that Binance will eventually register, given the high number of Nigerians actively trading on the platform.

The move by Binance comes in response to the regulatory requirements set out by Nigeria’s SEC, which mandates, among other things, that VASPs operating in the country must establish a physical office in Nigeria.

The SEC’s regulatory framework applies to virtual asset service providers and token issuers conducting business in Nigeria or offering services to Nigerian consumers. This includes platforms that facilitate the trading, exchange, custody, and transfer of digital assets. Notably, earlier this year, the SEC granted an Approval-in-Principle to two Nigerian crypto exchanges, Quidax and Busha, allowing them to operate legally under the Accelerated Regulatory Incubation Programme (ARIP).

Binance’s legal battles in Nigeria have attracted widespread attention, with reports of FX manipulation, tax evasion, and money laundering linked to the platform. The Nigerian government has also been cracking down on peer-to-peer naira trading, which led to the delisting of the naira by Binance and KuCoin from their platforms.

Tigran Gambaryan, the detained Binance executive, is currently at the center of these legal disputes. While Binance has insisted that Nigerian authorities do not need to detain Gambaryan to settle these issues, the government alleges that he played a role in enabling violations of Nigerian laws.

As these legal and regulatory issues continue to unfold, the future of Binance’s operations in Nigeria remains uncertain. All eyes are now on Nigerian courts, which are expected to pass verdicts on the legal dispute between the federal government and the crypto giant.

Binance’s position on registering under Nigeria’s SEC crypto framework hinges on the release of its executive and the resolution of ongoing legal disputes. Until these conditions are met, the platform is unlikely to comply with the SEC’s regulatory requirements, leaving the future of its operations in Nigeria in a state of flux.

Meanwhile, Nigeria remains one of the fastest-growing markets for cryptocurrency adoption, with over 22 million active crypto users, signaling a significant demand for digital assets in the country.