Nigeria Unveils New Rules and Compliance Program for Digital Assets; Nigeria rejects claims of Binance exec's poor health in custody
Nigeria's SEC has threatened to take regulatory action against anyone who violates the instructions in the circular. The Federal Government of Nigeria has rejected allegations of poor detention conditions for Tigran Gambaryan, saying he is receiving quality medical care and full consular services.
The Nigerian SEC has modified the regulations pertaining to digital asset issuance, offering platforms, exchange, and custody.
As per the circular on the SEC’s website, VASPs can now participate in the ARIP during a dedicated window for the onboarding procedure.
The Nigerian Securities and Exchange Commission (SEC) has modified the regulations pertaining to digital asset issuance, offering platforms, exchange, and custody.
The SEC sent a formal notice to the public outlining its plans to alter these important rules. The amendment process aims to improve the regulatory framework by making it more thorough and adaptable to the intricacies of digital asset markets.
The Accelerated Regulatory Incubation Program (ARIP) is a unique compliance program that the SEC introduced as part of this regulatory revamp. This program allows virtual assets service providers (VASPs) to comply with the new regulations. It is specifically made for VASPs.
As per the circular on the SEC’s website, VASPs can now participate in the ARIP during a dedicated window for the onboarding procedure.
Through the SEC’s ePortal, one can access the onboarding procedure. VASPs are instructed to finish the application process within 30 days after the circular date, even if its goal is to increase compliance.
Along with a strong warning that non-compliant VASPs will face consequences, the SEC also threatened to take regulatory action against anyone who disobeyed the guidelines in the circular.
Following Emomotimi Agama’s appointment as the new Director-General of the SEC, the first Rules on Digital Asset Issuance, Offering Platforms, Exchange, and Custody were amended in May 2022.
In the meantime, to reposition the Nigerian market, it is imperative that the government and authorities in Nigeria appropriately regulate the virtual assets industry rather than imposing clampdowns, crackdowns, and shutdowns.
The SEC of Nigeria put out a proposal in March to modify the regulations governing platforms that provide crypto services. The proposal called for raising the registration price for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
In recent years, Nigeria has become one of the crypto economies with the quickest growth rate. In terms of the adoption of crypto, it was also the second-biggest economy in 2023. According to the volume of Google searches for “crypto” or “buy crypto,” Nigeria was dubbed the nation most interested in crypto in August 2022.
Nigeria rejects claims of Binance exec's poor health in custody
Nigeria’s Federal Government has denied claims of poor prison conditions for Binance Executive Tigran Gambaryan, asserting he receives quality medical care and complete consular services, emphasizing adherence to lawful trial and judicial integrity.
The rebuttal statement was issued on Friday, June 21, by Mohammed Idris, Nigeria’s Minister of Information and National Orientation.
Idris’ statement comes on the heels of a recent post by two United States Members of Congress, Representative French Hill (Republican) and Representative Chrissy Houlahan (Democrat), who visited Gambaryan at the Kuje Detention facility on June 19th, 2024 and posted a video of the visit on X calling for his release.
The statement
In his statement, Idris emphasized that Gambaryan’s detention is grounded in a court order, and only the court can alter the terms or direct his release. The minister clarified that Gambaryan has access to necessary healthcare services despite being in lawful custody.
“It has become necessary for the Federal Government of Nigeria to address claims that Binance Executive Tigran Gambaryan is being held in unsavory prison conditions in Nigeria or that his health is deteriorating. We would like to state that these allegations are false and should be ignored.”
The minister emphasized that Gambaryan enjoys full consular support from his home government. He reiterated the government’s commitment to protecting his basic rights, including access to quality healthcare and a fair trial, as he faces legal proceedings in Nigeria.
“The Federal Government of Nigeria will continue to follow due process in its quest to bring Binance to justice — a legitimate sovereign quest that is similarly being pursued in several other countries worldwide.”
U.S. lawmakers back Gambaryan's release
Gambaryan’s wife, Yuki, has appealed to the Economic and Financial Crimes Commission (EFCC) to follow the Federal Inland Revenue Service (FIRS) example and release her husband, citing the FIRS’s recent withdrawal of charges as a precedent.
The U.S. lawmakers backed her, saying Tigran has devoted his professional life to fighting money laundering and tax evasion. According to them, he spent ten years as an IRS Special Agent and has successfully led cyber and financial crime investigations.
During the June 21 hearing, Abdulkadir Abbas, a director at the Security and Exchange Commission (SEC), resumed his testimony in the EFCC’s case against Binance and Gambaryan, reiterating that Binance had not obtained the necessary registration to operate in Nigeria.
The case has been adjourned to July 1 for continuation of cross-examination.
