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Binance working closely with Nigerian authorities to resolve executive retention issue

Effective interaction between the company and the authorities can also contribute to the development of a clearer and more effective regulatory framework for cryptocurrency activities in Nigeria.

Date: 2024-04-19 Author: Łukasz Michałek
Binance working closely with Nigerian authorities to resolve executive retention issue

Binance has been actively engaged in close cooperation with Nigerian authorities following the arrest of its head of financial crime compliance.

Director Tigran Gambaryan , along with another Binance official, faces charges of laundering more than $35 million. The case, adjourned until May 2, is being handled by Nigeria’s anti-corruption body.

Binance’s CEO says they are working to resolve the issue

At the Token2049 cryptocurrency conference in Dubai, Binance CEO Richard Teng addressed the Gambaryan situation, saying they are working on a solution to the issue.

“I can tell you that we are working very closely with the Nigerian authorities to try to resolve the issue,” he said. Meanwhile, the other director, Nadeem Anjarwalla, a Briton of Kenyan origin serving as regional director for Africa, fled Nigeria last month.

Anjarwalla and Gambaryan went to Nigeria after the country banned several cryptocurrency trading websites. However, they were detained by the Nigerian Economic and Financial Crimes Commission (EFCC) upon their arrival on February 26.

In addition to the EFCC case, Nigeria’s tax agency, the Federal Inland Revenue Service (FIRS) , has charged Binance and executives with tax evasion. The tax evasion case is scheduled to go to court on Friday.

Binance’s head of regional markets, Vishal Sacheendran, stressed that the arrests were an isolated case and unprecedented for the company. However, he declined to comment on the charges against Binance itself.

The charges against Binance Holdings Limited and its chief executives include tax evasion, currency speculation and money laundering to the tune of $35.4 million.

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Court documents show that Binance Holdings Limited, Tigran Gambaryan and Nadeem Anjarwalla (now at large) were charged before the Federal High Court of Nigeria in Abuja on March 28, 2024.

The charges include operating a specialized financial business without a valid license, operating as a financial institution without a license, illegally negotiating exchange rates, conspiracy to conceal the origin of illegal funds, and money laundering.

In addition, on March 22, the Nigerian government filed another four-count indictment against Binance Holdings Limited, Anjarwalla and Gambaryan, accusing them of offering services to subscribers on their platform without registering with the Federal Revenue Service and failing to pay the appropriate taxes.

Binance licensed in Dubai

Binance recently announced that it has obtained a license from Dubai regulator VARA, allowing the platform to serve retail customers as well as qualified and institutional clients.

According to Bloomberg, in the licensing process, Binance founder and former CEO Changpeng Zhao relinquished voting control of the Dubai unit. However, Teng dismissed the report as speculation, stressing that the company does not comment on media speculation and maintains a confidential relationship with regulators.

The European Union ‘s securities regulator recently stressed that “cryptocurrency exchanges largely operate outside the national regulatory framework,” and mentioned that Binance maintains that it is not domiciled.

Asked about the choice of Binance’s global headquarters, Teng revealed that the company has drawn up a short list of potential locations, but refrained from commenting on specific locations or giving a timeline for a final decision.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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