Nigerian court orders Binance to provide information on cryptocurrency traders

A Nigerian court has issued an interim order requiring cryptocurrency exchange Binance to provide comprehensive information on all Nigerian traders using its platform to Nigeria’s Economic and Financial Crimes Commission (EFCC). The order comes after Nigeria initially requested information about Binance’s top 100 users in the country and their transaction history over the past six months. Justice Emeka Nwite from the Abuja Division of the Federal High Court granted the motion filed by EFCC, seeking information on any Nigerian involved in trading on Binance. The court ordered Binance to provide the EFCC with the requested data.

This move by Nigerian authorities is part of their efforts to regulate the cryptocurrency industry, which they accuse of facilitating illegal capital outflows. They claim that these outflows have contributed to the weakening of the Nigerian currency ‘naira’ against the dollar. Binance, in particular, has come under scrutiny, with Nigerian authorities demanding $10 billion in penalties for enabling around $26 billion of untraceable funds.

To further address concerns, Nigerian authorities have detained two senior executives from Binance after inviting them to the country for discussions on the matter. A court hearing for the detained executives is scheduled for Wednesday. In addition, Nigerian authorities have proposed a 400% increase in registration fees for crypto firms operating in the country.