The trial of Binance Holdings Limited and its Executive Officer, Tigran Gambaryan, continued before Justice Emeka Nwite at the Federal High Court on July 2, 2024. The Economic and Financial Crimes Commission (EFCC) has charged Gambaryan and Binance Holdings Ltd with tax evasion, currency speculation, and money laundering totaling $34.4 million.
During cross-examination, the first prosecution witness, Abdulkadir Abbas, testified that Binance’s activities did not comply with the Securities and Exchange Commission (SEC) regulations. Abbas explained that virtual asset providers must register with the SEC and pay the required fees before operating in the country.
Abbas highlighted that SEC rules, updated in 2022, mandate registration for Digital Asset Offering Platforms (DAOP), Digital Assets Exchanges (DAE), and Digital Assets Custodians (DAC), each with specific registration requirements and fees. He also noted that a minimum trade capital of N500 million is required for DAOPs and DAEs.
In his testimony, Abbas affirmed his understanding of digital asset activities and clarified the roles and registration requirements for different digital asset entities. He also refuted the defense’s argument that the SEC’s governing law does not cover virtual assets, stating that SEC regulations adequately encompass these entities under the Investment and Security Act.
The trial continues as the court examines the compliance and regulatory framework governing digital assets in Nigeria.
