Binance is delaying its application for a Nigerian license, setting the release of its jailed employee, Tigran Gambaryan, and the resolution of issues with the Nigerian government as conditions for pursuing registration.
The company has expressed concerns about the Nigerian Securities and Exchange Commission’s (SEC) fast-track registration program, claiming that its framework lacks legal backing.
In a statement, a Binance spokesperson said, “We are pleased that Nigeria is progressing in its digital assets regime. However, once Tigran Gambaryan is freed and our issues are resolved, we may seek registration.”
This stance follows recent SEC approvals for local digital exchanges Quidax and Busha Digital.
Despite Binance’s hesitation, the exchange remains popular among Nigerian users.
According to an SEC official, this popularity may reduce Binance’s urgency in pursuing a license, even though the Commission expects it to comply with regulations.
An anonymous source noted that Binance likely does not feel compelled to adopt the SEC’s new framework, describing it as “hastily formulated and lacking legal support.”
While Binance is currently operating in Nigeria without a formal license, the SEC continues to warn residents against using unregulated exchanges.
Binance is a cryptocurrency exchange founded in 2017 in Hong Kong with a strong focus on altcoin trading.
Binance provides wallets for traders to store electronic funds and offers support services for users to earn interest or conduct transactions using cryptocurrencies.