Nigeria’s SEC Introduces Fresh Crypto Regulations Amid Binance Controversy
By Julia Smith
Updated: June 21, 2024, 14:43 EDT | 2-minute read
The Nigeria Securities and Exchange Commission (SEC) has announced a new crypto regulatory framework with a focus on revising its approach to digital asset issuance, exchange, custody, and offering platforms. This development comes just one day after U.S. lawmakers paid a visit to detained Binance executive Tigran Gambaryan.
Nigeria SEC Enhances Crypto Regulations
In an official statement by the Nigeria SEC, the updated regulatory framework aims to “broaden the scope of regulation in accordance with current realities.”
The announcement introduces a “special window” for virtual asset service providers (VASPs) to apply for Nigeria’s new “Accelerated Regulatory Incubation Program (ARIP),” which is a regulatory initiative for companies operating in the Fintech industry.
According to the SEC’s website, ARIP is “designed for promoters of new business models and processes that are currently engaging in full or ancillary Capital Market activities without the required authorization through the use of technology.”
The SEC’s latest program seeks to facilitate the development of effective regulation while safeguarding market integrity and ensuring investor protection.
All prospective Nigerian VASPs interested in ARIP have a 30-day window to complete their applications. After that, the government has stated that it will take enforcement actions against non-compliant firms.
Binance Executive Tigran Gambaryan Detained Amid Deteriorating Health
The news of Nigeria’s evolving regulatory stance on digital assets comes shortly after two U.S. lawmakers visited the country to meet with detained Binance executive Tigran Gambaryan, following reports of his deteriorating health.
“During our visit, we observed that he is suffering from the conditions there, as he has contracted malaria and developed double pneumonia, and he informed us that he has lost a significant amount of weight,” said Congressman French Hill (R-LA) and Congresswoman Chrissy Houlahan (D-PA). “To make matters worse, he is being denied access to adequate medical care.”
Notably, the Binance executive collapsed during a court hearing in Abuja in late May and was subsequently ordered to be admitted to a hospital. However, Gambaryan’s family claims that he has not received any proper medical attention despite the judge’s orders.
“It took the prison authorities 11 days to take him for a brief check-up,” stated his family in a press release on June 14. “The prison is withholding the results of this check-up from his family, lawyers, and even the U.S. embassy, as they have named a prison staff member as his next of kin.”
Since then, U.S. lawmakers have written a letter to the White House, urging President Joe Biden to demand Gambaryan’s release.
“Tigran must be immediately granted a humanitarian release, all remaining charges dropped, and he must be allowed to return home to America where he rightfully belongs,” said Hill.
Nadeem Anjarwalla, another Binance employee who was arrested alongside Gambaryan, managed to escape the following month and is currently at large.
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