Nigerian cryptocurrency stakeholders are weighing in on the government’s request for Binance to disclose details about its top 100 users in the country amid a crackdown on the exchange. Opinions in the crypto community vary, with some supporting the government’s actions while others disagree.
In interviews with Cointelegraph, local crypto stakeholders shared their opinions about the situation. Crypto analyst Rume Ophi said that the government was well within its rights, as requests like this are always made when the government is trying to investigate national security matters.
However, Ophi’s opinion doesn’t sit well with that of other local crypto enthusiasts who took to X to express their disagreement. Chukwumaeze Dike, a crypto enthusiast and cybersecurity specialist, said he finds the request for the top 100 users surprising and doubts Binance will comply.
However, Nigerian finance professional Olumide Adesina took to X to inform Binance users about the specified terms for disclosing such information via the company’s Government Law Enforcement Request System.
The Binance Government Law Enforcement Request System states that Binance may share user information with courts, law enforcement authorities, regulators, attorneys or other third parties to comply with laws and respond to law enforcement and regulatory requests, especially when compelled to by a subpoena, court order, search or seizure warrant.
Related: Binance says it trained investigators in Nigeria under government cooperation
Nigeria is reportedly pressing Binance to provide information on its top 100 users amid an ongoing crackdown on the exchange. In addition to that, Nigerian authorities have requested that Binance turn in its transaction history for the past six months.
Nathaniel Luz, the CEO of Flincap — a liquidity platform for crypto exchanges — said that the Nigerian authorities are likely requesting the list of the top 100 Nigerian peer-to-peer traders on Binance to ascertain if there has been any market manipulation of the Nigerian naira/United States dollar exchange rate on the platform. This information will also contain the trades done by these individuals.
Bayo Onanuga, the presidential adviser on information and strategy, argued that Binance and other crypto platforms manipulated the naira and triggered a massive decline in the local fiat currency. The official also suggested banning platforms like Binance in the country.
Nigeria has emerged as one of the fastest-growing crypto economies in the world in the past few years. It is also the second-biggest economy in the world in terms of crypto adoption in 2023. In August 2022, Nigeria was named the most crypto-obsessed country in the world by the number of Google searches for “cryptocurrency” or “buy crypto.”