Nicholas Anthony, a policy analyst at the Cato Institute's Center for Monetary and Financial Alternatives, has expressed concern over the Nigerian government's approach towards the cryptocurrency industry. This includes the detention of two Binance employees, which Anthony believes could lead to an increasing hesitance among companies to conduct business in Nigeria. These comments were made in a commentary on the Cato Institute's website on April 11.
"Consider the government's actions over just the past few years," said Anthony. "The Nigerian government created a central bank digital currency (CBDC), caused a cash shortage, banned cryptocurrency, lifted the ban on cryptocurrency, blocked access to exchanges, detained foreign citizens, and is now considering a ban on cryptocurrency once again. Whether it be cryptocurrency developers, exchange platforms, or even traditional financial institutions, it's likely many companies are becoming increasingly hesitant from doing business in the country. And this lack of investment will again result in Nigerian citizens suffering the costs of the government's mistake."
According to Anthony, the Nigerian government could take responsibility for mismanaging its currency, the naira, by allowing market forces to determine its exchange rate instead of implementing inconsistent price controls. He highlighted that tensions escalated in February when Nigerian officials blamed cryptocurrency for the depreciation of the naira. Subsequently, Binance employees Tigran Gambaryan and Nadeem Anjarwalla were invited for discussions but ended up being detained and are now facing criminal charges.
Leo Schwartz, author of the Proof of State newsletter, reported that after a month in detention, Anjarwalla managed to escape while Gambaryan's conditions have worsened since his arrest. Schwartz opined that it has become evident that Gambaryan and Anjarwalla are being used as pawns by the Nigerian government in their attempt to extract a hefty fine from Binance. He raised concerns about whether Gambaryan is being held captive as a bargaining chip.
On March 15, according to a post on their website, The Chamber of Digital Commerce issued an urgent call to action asking President Joe Biden and the U.S. government to employ all diplomatic measures for Gambaryan’s immediate release. The Chamber argued that Gambaryan appears to have been lured into Nigeria under false pretenses and is now being held hostage with an aim to coerce a fine from Binance. They warned that this sets a dangerous precedent for American businessmen abroad.
Binance recognized Gambaryan as someone globally dedicated to law enforcement, according to a post on their website. Gambaryan, a former U.S. federal agent for ten years, has investigated cases related to national security, terrorism financing, identity theft, distribution of child pornography, tax evasion, and Bank Secrecy Act violations while working with the U.S. Treasury Department’s IRS Criminal Investigations unit.
Anthony's research primarily focuses on monetary and financial economics, as stated on the Cato Institute website. He is an expert in fields including cryptocurrency, central bank digital currency, and financial privacy and holds a fellowship at the Human Rights Foundation.