The Nigerian government is currently in a heated standoff with cryptocurrency exchange Binance, demanding detailed information on its top users in Nigeria and all transaction history for the past six months. This request comes amidst concerns over the fluctuation of the Naira, Nigeria’s currency.

According to a recent report by The Financial Times, the Nigerian government, through the office of the National Security Adviser, is also seeking to address any outstanding tax liabilities with Binance. This demand coincides with the detention of two key executives from the exchange, Nadeem Anjarwalla and Tigran Gambaryan, who play crucial roles in Binance’s operations in Africa.

The Nigerian government views Binance as a significant threat to the stability of the Naira, leading to restrictions on the exchange’s activities in the country’s cyberspace in February. Governor of the Central Bank of Nigeria, Olayemi Cardoso, raised concerns at a recent Monetary Policy Committee meeting, alleging that $26 billion was funneled through Binance last year without proper oversight.

In response to the government’s regulatory clampdown, Binance announced last week that it would discontinue all services for Nigeria’s fiat currency, the Naira. This decision has sparked further debate on cryptocurrency regulations in the country, with calls for restrictions coming from influential figures like Bayo Onanuga, President Bola Ahmed Tinubu’s Special Adviser on Information & Strategy.

Despite the ongoing tensions, the Naira saw a slight appreciation to N1603.38 per USD at the forex market on Tuesday, as reported by FMDQ data. The situation remains fluid as negotiations between the Nigerian government and Binance continue to unfold.