Naira Speculation: Are Bybit, KuCoin toeing the Binance path? How to avoid another clampdown spree

It’s no longer news that the Nigerian Naira has had a difficult start to 2024. Between January and February, the local currency hit its lowest point (in history) against the United States dollar. 

The Federal Government of Nigeria, through the Central Bank of Nigeria (CBN), blamed the free fall on USD/Tether (USDT) trading practices on major cryptocurrency exchanges.

This phenomenon has stirred up regulatory concerns, leading to a drastic response from Nigerian authorities, particularly targeting the operations of major crypto platforms like Binance and others like Kucoin and Bybit. The world’s biggest exchange, Binance took a direct hit following the public expression by CBN Governor, Yemi Cardoso.

In a bold move, in February, the Nigerian authorities detained two Binance executives: Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance was detained alongside Nadeem Anjarwalla, a British Kenyan.

Gambaryan appeared in court in Abuja on Friday but did not take a plea. Anjarwalla fled the country last month. But Binance has not been charged. A federal high court sitting in Abuja, last Friday adjourned the tax evasion trial to May 17.

The charges include non-payment of value-added tax (VAT), company income tax, failure to file tax returns, and helping customers evade taxes through the Binance platform. The Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.

Related post: Detained executive: CEO says Binance is working with Nigerian government to resolve issues

Consequently, Binance banned Naira trading on its platform. Last week, CEO, Richard Teng said that the company is working closely with the Nigerian authorities “to try to resolve the matter” while speaking at the Token2049 crypto conference in Dubai.

Although there is no clear proof of this, it is believed in some quarters that the. clampdown on Binance has contributed to the relative stability of the Naira and its impressive recovery of the currency against the US dollar in the last four weeks.

However, there have been concerns that the Nigerian authorities would eventually go after other crypto exchanges facilitating p2p transactions like Bybit and KuCoin. Early this week, the CBN debunked a fake circular that had suggested the possibility.

Is Bybit toeing the Binance path?

Last week, a faceless association, which collectively styled itself as, the Nigerian Crypto Traders Association, released a statement to notable crypto exchange, Bybit.