The war between Binance and Nigeria is escalating: Justice demands data from all users

The conflict between Binance, the global leader in cryptocurrency exchanges, and the Nigerian authorities has taken a new turn. A Nigerian court has ordered the platform to provide comprehensive data of all its Nigerian users, marking a new chapter in this confrontation that has been going on for months.

The Binance-Nigeria Conflict Escalates Day by Day

The case began when Nigerian authorities accused Binance of facilitating the movement of $26 billion in untraceable funds out of the country. In response, Nigeria slapped the platform with a colossal $10 billion fine.

But things didn’t stop there. Nigeria also invited two senior Binance executives to enter the country to discuss the matter. However, once there, the authorities detained these leaders, a situation that has now lasted for several weeks.

In the face of this escalation, Nigerian authorities summoned Binance to appear in court to explain itself. According to Reuters news agency, a hearing involving the two detained executives is due to take place on Wednesday.

But the turning point came from a court decision. A Nigerian federal court has ordered Binance to provide Nigeria’s Economic and Financial Crimes Commission (EFCC) with complete information on all Nigerians using its platform. This order follows a previous request where Nigeria was already demanding data of Binance’s top 100 Nigerian users as well as the transaction history of the last six months.

A Major Issue for the Crypto Industry

This arm wrestle between Binance and Nigeria is part of a broader context of mistrust by Nigerian authorities towards crypto. The country accuses these currencies of facilitating illegal capital outflows, contributing to the weakening of the national currency, the naira, against the US dollar.

But beyond Binance, it’s the entire crypto industry that is under Nigeria’s scrutiny. Authorities have proposed a drastic 400% increase in registration fees for companies in this sector, a measure that could discourage many.

What is happening in Nigeria is not an isolated case. Binance is facing legal setbacks in several jurisdictions. In the United States, for example, Binance and its former CEO, Changpeng Zhao (CZ), are on the hot seat and had to pay a record fine of more than $4 billion.

In addition, the US authorities have placed CZ under house arrest in the USA, deprived of the right to leave the country, and he is facing a 10-year prison sentence. However, the detention of executives and requests for massive user data disclosure put the Nigerian affair at a level of confrontation rarely reached elsewhere.

The consequences of this tug-of-war could be significant. If Binance were to comply with the demands of Nigeria, it could set a worrying precedent for the privacy of cryptocurrency users’ data around the world.

In short, the conflict between Binance and the Nigerian authorities is emblematic of the challenges facing the crypto industry in a context of increasing regulation. Beyond the financial stakes, it is the question of protecting users’ data that is on the table. The outcome of this tug-of-war will be closely followed, as it could have repercussions far beyond Nigeria’s borders.