According to an interim order from a Nigerian court, Binance will have to provide all user data from the country: the decision aims to counter illicit activities associated with cryptocurrencies.
According to Peoples Gazette, the cryptocurrency exchange Binance has received an order from a Nigerian court to provide data on all citizens of the country who engage in transactions on its platform. The request was made by the Economic and Financial Crimes Commission (EFCC), the Nigerian national agency responsible for combating financial crime.
The order follows a previous request to obtain information on the top 100 users in the country and their entire transaction history over the last six months. Justice Emeka Nwite of the Abuja Division of the Federal High Court deemed it appropriate to extend this order, granting the request of EFCC’s lawyer, Ekele Iheanacho, who sought information on all Nigerians operating on Binance.
“The applicant’s application dated and filed 29th February, 2024, is hereby granted as prayed. That an order of this honourable court is hereby made directing the operators of Binance to provide the commission with comprehensive data/information relating to all persons from Nigeria trading on its platform.”
The government’s reasons
Nigerian government contends that the digital asset industry may facilitate the outflow of capital derived from illicit activities from the country, causing a devaluation of the local currency, the Naira.
Recently, the country’s authorities imposed a $10 billion fine on Binance for allowing the entry and use of approximately $26 billion on its exchange from sources and users not identifiable by the government.
To discourage the spread of cryptocurrencies in the country, Nigerian authorities have also proposed a 400% increase in registration fees for companies operating in the digital asset sector.
