Nigerian SEC Unveils New Crypto Regulations Amid Binance Executive Scandal

Nigeria SEC Unveils Updated Crypto Regulations

On Friday, the Nigeria Securities and Exchange Commission (SEC) announced a new regulatory framework for digital asset issuance, exchange, and custody. This comes just a day after U.S. lawmakers visited Binance executive Tigran Gambaryan, who is currently detained in Nigeria.

New Regulatory Framework

According to the Nigeria SEC, the updated regulations aim to “expand the scope of regulation in line with the current realities.” A key element of this update is the introduction of the “Accelerated Regulatory Incubation Program (ARIP),” which provides a special window for virtual asset service providers (VASPs) to apply for regulatory approval.

ARIP is designed for fintech companies engaging in capital market activities without the required authorization, utilizing innovative business models and technologies. The SEC hopes this program will foster effective regulation while maintaining market integrity and investor protection.

Prospective Nigerian VASPs have 30 days to submit their applications. The SEC has stated that enforcement actions will follow against non-compliant firms.

Binance Executive’s Health Crisis

The timing of Nigeria’s regulatory update coincides with the deteriorating health of Binance executive Tigran Gambaryan, who was detained in Nigeria. U.S. lawmakers recently visited Gambaryan, reporting that he suffers from malaria and double pneumonia and has been denied proper medical care.

Congressman French Hill (R-LA) and Congresswoman Chrissy Houlahan (D-PA) expressed their concerns: “He has lost significant weight and is not receiving adequate medical attention.”

Gambaryan collapsed during a court hearing in late May and was ordered to be hospitalized, but his family claims he has not received proper care. The U.S. lawmakers have urged President Joe Biden to intervene for Gambaryan’s humanitarian release and return to the U.S.

Meanwhile, another Binance employee, Nadeem Anjarwalla, who was arrested with Gambaryan, escaped and remains at large.