Nigerian cryptocurrency stakeholders are providing their perspectives on the government’s request for Binance to disclose information about its top 100 users in the country as part of a crackdown on the exchange. Opinions within the crypto community differ, with some supporting the government’s actions while others disagree.
Local crypto stakeholders shared their views on the matter in interviews with Cointelegraph. Crypto analyst Rume Ophi stated that the government was justified in making such requests as they are commonly made when national security matters are being investigated.
However, other local crypto enthusiasts, who expressed their dissent on X, do not agree with Ophi’s opinion. Chukwumaeze Dike, a crypto enthusiast and cybersecurity specialist, finds the request for the top 100 users surprising and doubts that Binance will comply.
Nigerian finance professional Olumide Adesina took to X to educate Binance users about the specific terms for disclosing such information through the company’s Government Law Enforcement Request System.
The Binance Government Law Enforcement Request System outlines that Binance may share user information with courts, law enforcement authorities, regulators, attorneys, or other third parties in order to comply with laws and respond to law enforcement and regulatory requests. This is particularly the case when compelled to do so by a subpoena, court order, search, or seizure warrant.
Nigeria is reportedly pressuring Binance to provide information on its top 100 users as part of an ongoing crackdown on the exchange. Additionally, Nigerian authorities have requested that Binance submit its transaction history for the past six months.
Nathaniel Luz, the CEO of Flincap, a liquidity platform for crypto exchanges, believes that Nigerian authorities are likely requesting the list of the top 100 Nigerian peer-to-peer traders on Binance to determine if there has been any manipulation of the Nigerian naira/United States dollar exchange rate on the platform. This information will also include the trades conducted by these individuals.
Bayo Onanuga, the presidential adviser on information and strategy, argued that Binance and other crypto platforms manipulated the naira and caused a significant decline in the local fiat currency. The official also suggested banning platforms like Binance in the country.
Nigeria has emerged as one of the world’s fastest-growing crypto economies in recent years. It is also the second-largest economy in terms of crypto adoption by 2023. In August 2022, Nigeria was recognized as the most crypto-obsessed country based on the number of Google searches for “cryptocurrency” or “buy crypto.”