In the wake of alarming volatility in the naira, the Nigerian government has embarked on a crackdown on the global cryptocurrency exchange Binance for alleged money laundering and tax evasion. Before these developments, the country's cryptocurrency use stood at 32% with 9% per annum growth to the tune of $56.7 billion from June 2022 to July 2023..

In the face of economic decline, the government behind the largest cryptocurrency market in the world launched an investigation into probable culprits in the woodwork. This witch hunt led to the arrest and charge of Binance executives Tigran Gambaryan and Nadeem Anjarwalla on February 26th, 2024 on four counts of tax evasion, foreign exchange manipulation, and laundering of over $35 million.

The arrest was made by Nigeria's Economic and Financial Crimes Commission (EFCC) with evasion charges filed by her Federal Inland Revenue Service (FIRS). The saga has since unfolded with Anjarwalla escaping custody on smuggled passports while Biritish-Kenyan senior executive, Gambaryan continues to take the heat.

He has since maintained his non-guilty plea and the case itself was adjourned last week due to the absence of proper notification to Binance ahead of their staff's arraignment. Gambaryan's request to be charged separately from Anjarwalla has also been denied by Federal High Court judge Justice Emeka Nwite, Abuja Division.

In a recent statement, Binance has urged for the release of their executive, emphasizing Gambaryan's limited role in the company's major decisions. Despite both executives suing the Federal High Court of Nigeria for human rights violations, Gambaryan's bail application remains set for April 18th with trial commencing on May 5th.

What does this mean for cryptocurrency in Nigeria?

The implication of these events on the crypto clime in Nigeria is surprisingly non-existent. To begin with, crypto adoption in Nigeria was triggered by the following factors namely:

1. Gross unemployment

2. High inflation

3. High currency devaluation

4. Corruption

5. Political instability

This drove the majority of the country's talented, industrious youths to a less centralized store of value and a lucrative way to achieve financial security. The crypto culture has remained the same amidst bans and severe regulations in recent years.

In light of the government's heavy crackdown on Binance and even other platforms like Kraken and Coinbase, Nigerians have remained persistent in their use of cryptocurrency to bypass economic limitations. As of writing, the future of crypto in Nigeria remains uncertain.

Will we see more stringent actions taken against industry or this wave pass as usual to usher in a more liberal approach towards the expansion in Nigeria?

Share your thoughts in the comments.