Abuja, Nigeria – The Nigerian government has disclosed that Binance, a prominent cryptocurrency platform, generated a turnover exceeding $20 billion from its activities in Nigeria in 2023, yet did not pay any taxes to the country. This revelation came from the Minister of Information and Orientation, Mohammed Idris, amid allegations involving the detention of two Binance executives.
Minister Idris clarified the circumstances surrounding the detention of Tigran Gambaryan and Nadeem Anjarwalla, asserting that the executives were apprehended for engaging in currency speculation and operating unregistered business activities within Nigeria. “It would be recalled that Binance had a turnover in Nigeria of over $20 billion in 2023 alone, far above the federal budget for health and education, fueling currency speculation and the cost-of-living crisis. In addition, it is not registered in Nigeria and neither has it ever paid any taxes within the Nigerian jurisdiction, having all the while operated without oversight or any of the normal guard rails to flag criminal activity,” said Idris.
Arrests and Legal Proceedings
On February 28, the Nigerian government arrested Gambaryan and Anjarwalla on charges of currency speculation. Anjarwalla later escaped custody in March. Subsequently, in April, Gambaryan was arraigned in court on charges of tax evasion and money laundering. Despite being on the run, Anjarwalla has been included in the lawsuit against Binance.
In a hearing at the Federal High Court in May, Gambaryan was denied bail and remanded to Kuje Correctional Centre pending the continuation of his trial. Aluko & Oyebode, the law firm representing Binance Holdings Limited, has raised concerns about Gambaryan’s well-being, suggesting he may face severe health risks while in custody and calling for his release.
Impact on Nigeria
The case against Binance highlights broader issues concerning cryptocurrency regulation and taxation in Nigeria. The government’s focus on Binance’s substantial turnover without corresponding tax contributions underscores the challenges of regulating digital financial platforms operating across borders. This situation also brings to light the significant impact of unregulated financial activities on Nigeria’s economy, particularly concerning currency speculation and its effect on the cost of living.
Looking Forward
The Nigerian government’s actions against Binance and its executives reflect a growing determination to enforce financial regulations and ensure that companies operating within the country contribute to the national revenue. The ongoing trial and the outcomes of these legal proceedings could set important precedents for the regulation of cryptocurrency platforms in Nigeria and potentially across Africa.
As the legal battle continues, the focus remains on whether Binance will address the regulatory and tax concerns raised by the Nigerian authorities and how this will impact the broader cryptocurrency market within the region.
