Nigerian Blockchain Committee Warns Binance Legal Issues Could Damage Country’s Reputation

Binance Nigeria

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 27, 2024 05:53 EDT

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The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has expressed concerns over the ongoing legal disputes between cryptocurrency exchange Binance and the Nigerian government.

BICCoN, which represents the Nigerian blockchain industry, has urged a balanced approach to resolving these issues, noting the potential implications for the country’s blockchain ecosystem and international reputation.

In a recent statement, BICCoN emphasized the importance of a fair and transparent resolution that promotes trust and collaboration with stakeholders, including international partners.

Binance Legal Battles Could Deter Investors

The ongoing legal battles and detention of Binance executives have created an atmosphere of uncertainty and risk, potentially deterring potential investors and partners, according to BICCoN President Lucky Uwakwe.

He added that BICCoN aims to mitigate these concerns and foster an environment conducive to growth and innovation in the blockchain industry.

Local stakeholders have previously stressed the need for responsible regulation of the digital assets industry in Nigeria, emphasizing the importance of clear regulations, investor confidence, and enhanced regulatory capabilities.

“BICCoN believes that the Nigerian government should address issues proactively,” the statement read.

“By taking steps to resolve the current legal challenges fairly and transparently, the government can restore confidence among investors and the international community.”

BICCoN releases statement on Binance-Nigeria situation. Highlights industry impact, law enforcement implications, and balanced resolutions. Read our analysis and recommendations for a robust blockchain ecosystem: https://t.co/RXlGkcEJMj @cenbank @SECNigeria @binance @Coin pic.twitter.com/11QFlLn46d

— Blockchain Industry Coordinating Committee of Nig. (@biccon2021) June 25, 2024

Uwakwe added that such an approach will not only resolve the ongoing legal disputes but also pave the way for long-term sectoral growth and innovation.

“BICCoN also believes that the government should take proactive steps to reassure both local and international stakeholders of its commitment to a fair and balanced approach,” the committee wrote.

“Clear communication and ongoing dialogue with industry players, investors, and international partners are essential.”

US Lawmakers Visit Detained Binance Executive

Last week, US lawmakers French Hill and Chrissy Houlahan made a visit to Kuje Prison in Nigeria, where detained Binance executive Tigran Gambaryan is being held.

Hill described Gambaryan’s wrongful detention in what he called a “horrible prison,” bringing attention to the health concerns Gambaryan is facing while in custody.

Despite suffering from malaria, double pneumonia, and significant weight loss, Gambaryan is being denied adequate medical care.

“We found him suffering from the conditions [at the Kuje prison]… Even worse, he’s being denied access to adequate medical attention.”

Notably, there was a recent court ruling on June 14 that cleared Gambaryan and Anjarwalla of tax evasion charges.

The tax evasion charges were initially filed against Gambaryan and Anjarwalla in March 2024 by the FIRS, alleging that they had failed to pay taxes on cryptocurrency transactions worth billions of naira.

Previously, Binance CEO Richard Teng accused a Nigerian government official of pressuring crypto representatives to accept a secret agreement to settle Nigeria’s claims against the exchange.

The “settlement” was actually a $150 million bribe from “someone in the Nigerian government.”

However, Nigeria fired back at Binance’s bribe accusation, claiming it’s a distraction to shift focus away from the exchange’s actions.