The Nigerian House of Representatives Committee on Financial Crimes has escalated the government’s pressure on cryptocurrency exchange Binance. The committee on Monday recommended the arrest of Binance CEO Changpeng Zhao over alleged tax evasion and money laundering activities in Nigeria.
This action follows a motion by Isah Dogonyaro (APC-Jigawa) during a public hearing held on Monday in Abuja.
The committee said that despite being invited twice, Mr Zhao, who is not based in Nigeria, refused to appear before them and answer questions regarding the allegations.
Mr Dogonyaro criticised these absences as an “insult to the committee and the Nigerian people.”
Binance’s legal counsel, Senator Ihenyen, argued that the company had already responded in writing to all accusations. He expressed further willingness to provide additional written answers if required.
Mr Ihenyen said the company was concerned about the safety of its officials in Nigeria after last week’s arrest of two senior company representatives by the National Security Adviser’s office.
The committee chairman, Ginger Obinna (LP-Abia), said the House had taken a position of not accepting legal representation from Binance. He said the leadership of Binance should be arrested and brought to the committee to answer questions against the company.
“This committee has resolved to recommend to the House to invoke its constitutional powers by issuing a subpoena and a warrant for Binance executives to be arrested and brought to this committee to answer these questions on terrorism, money laundering and other financial crimes as stated in the petition including evasion of tax,” he said, according to the News Agency of Nigeria.
The committee said its hearing was based on a petition claiming that Binance exploited 20 million young Nigerians in the last six years. The complaints were submitted by Empowerment Fund for Nigerian Youth Initiative and the Niger Delta Youth Council of Nigeria, according to the News Agency of Nigeria.
Unresolved issues
The Nigerian government is accusing Binance of using cryptocurrency exchange is popular amongst young Nigerians, to manipulate the exchange rate of the naira.
The currency has plunged from around 464 it exchanged to a dollar last June when President Bola Tinubu came to office, to over 1600. Binance denies its platform sets exchange rate.
Last month, the government ordered the internet providers in Nigeria to bar access to Binance website, but Nigerian users continued to use the platform, using virtual private network (VPN).
The government arrested two Binance executives who flew into the country for talks last week. Presidential spokesman Bayo Onanuga later told the BBC the government was imposing a $10 billion fine on Binance, but later claimed he was misquoted.
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