Key Points
- Binance has been blocked by the Philippines Securities and Exchange Commission after an initial warning regarding the lack of necessary licenses.
- The crypto exchange is also facing problems in Nigeria, resulting in tax charges following the executive’s fleeing from custody.
Binance is currently facing regulatory issues in the Philippines, along with problems stemming from the executive fleeing from custody in Nigeria.
A new press release from the Reuters press agency reveals that Nigeria has filed tax evasion charges against the crypto exchange, and it’s seeking an international arrest warrant for the regional manager of the company for Africa. He fled custody during the past week, according to officials.
Reuters notes the following:
“The manager Nadeem Anjarwalla, a British-Kenyan, was detained in connection with an ongoing criminal investigation into Binance’s activities in Nigeria.”
The manager’s security adviser’s office revealed that they were working in collaboration with Interpol after his escape.
Binance also said that it is aware of the fact that the manager was no longer in Nigerian custody, and it’s currently working with authorities in Nigeria in order to resolve the problem, according to Reuters.
Anjarwalla and Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, flew to the country following the decision to ban some crypto trading websites. They were arrested on February 26.
“We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains on the safety of our employees and we are working collaboratively with Nigerian authorities to quickly resolve this issue,” a Binance spokesperson told CNBC.
The government alleged that the crypto exchange was laundering money, citing the fact that $26 billion worth of untraceable funds were on the move via Binance.
The Philippines Securities and Exchange Commission blocks Binance
The Philippines watchdog decided to block the exchange’s operations in the country.
They previously filed a formal request with National Telecommunications on March 12 to help block the website and other web pages used by the crypto exchange.
This move follows a warning that was released back in November 2023.
SEC Chairperson Emilio B. Aquino said the following in the letter-request addressed to the NTC:
“The SEC has identified the aforementioned platform and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos.”
The securities watchdog has stated that Binance did not acquire the necessary license from the SEC, which goes against the country’s regulations.
Also, the regulator has accused the crypto exchange of running promotional campaigns on social media that target investors in the country without having regulatory approval for the action.
In other news regarding the crypto exchange, a recently established crypto entity, CommEX, that took over operations of Binance in Russia announced today that it will begin shutting down.
“We advise users to promptly close positions, withdraw assets and manage their assets on the platform,” CommEX said.
The platform is set to gradually close operations that prohibit registering new users and transferring assets from Binance. The task is set to be completed by May 10.
CommEX bought the Binance Russian business back in September 2023 without public disclosure of the financial terms of the business.
Binance decided to leave the Russian market last year, and at the moment, the exchange is in talks with various platforms about a potential new buyer to replace CommEX.
