Binance: Nigerian High Court Exonerates Two in Tax Saga

ABUJA, (iexclusivenews) – In a landmark ruling, the Federal High Court of Nigeria has absolved two individuals, Tigran Gambaryan and Nadeem Anjarwalla, from allegations of tax evasion in a case involving the global cryptocurrency exchange, Binance.

This decision follows the strategic appointment of a Nigerian representative for Binance, marking a significant turn in the legal proceedings.

Court Proceedings Take a New Turn

Previously, the Federal Inland Revenue Service (FIRS) had brought charges against Gambaryan and Anjarwalla, accusing them of facilitating tax evasion for Binance’s operations in Nigeria.

However, the court has now struck out these charges, shifting the focus solely onto Binance after the confirmation of Ayodele Omotilewa as the company’s official representative in the country.

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Allegations of Tax Evasion

The case against Binance centers on the accusation that the firm failed to collect and remit taxes, including Value Added Tax (VAT) and Company Income Tax (CIT), from its Nigerian operations.

The FIRS cited non-compliance with Section 40 of the FIRS Establishment Act 2007 as amended, as the basis for their legal action.

A Shift in Legal Strategy

The court’s recent decision to discharge Gambaryan and Anjarwalla, who had been implicated in the FIRS’s initial charges, signifies a pivotal shift in the legal strategy.

With Binance now standing as the sole defendant, the proceedings have been adjourned to July 12, where discussions will continue regarding the role of the Nigerian representative in court.

The Backstory of Binance’s Legal Challenges

The backdrop of this case is rooted in the Federal Government’s accusations against Binance, claiming the exchange influenced foreign exchange rates, leading to stricter regulations on cryptocurrency trading platforms.

The Economic and Financial Crimes Commission (EFCC) is also pursuing a separate case against Binance and its executives for alleged money laundering and foreign exchange contravention.

This development has far-reaching implications for the cryptocurrency industry in Nigeria, particularly concerning regulatory compliance and the government’s stance on digital currencies.

As the legal proceedings unfold, the outcome may set a precedent for how cryptocurrency firms operate within the country’s legal framework.

What You Should Know

As the Nigerian court system navigates this complex case, the eyes of the world are watching. The decisions made here could influence the future of cryptocurrency regulation not only in Nigeria but potentially across the African continent and beyond. The next hearing is poised to be a defining moment in this ongoing legal saga.