There have been reports claiming that the Nigerian government is contemplating levying fines as high as $10 billion on Binance, a popular cryptocurrency exchange. According to local media outlets, Bayo Onanuga, the special adviser to the Nigerian president, has accused Binance of profiting from facilitating illegal transactions within the African country. Onanuga stated that the nation incurred significant losses due to the exchange’s actions and believes that imposing a hefty fine would serve as a form of retribution. Additionally, the reports mention that Binance operated in Nigeria without proper registrations, which has raised concerns among regulatory authorities.
At present, Binance has not yet provided a public response to the allegations leveled against it by the Nigerian government. However, there are claims that the exchange is cooperating with the ongoing investigations in the country. Premium Times editor Oladeinde Olawoyin mentioned that the government has acknowledged Binance’s cooperation in providing crucial information and suspending naira-related transactions on its platform. Binance has also expressed its commitment to collaborating with local authorities, lawmakers, and regulators to ensure compliance and prevent fraudulent activities on its platform. Despite these statements, the exchange has remained silent on the specific issues raised by Nigerian authorities.
In recent weeks, the Nigerian government has intensified its scrutiny of Binance’s operations within the country, particularly in relation to foreign exchange (FX) matters. Reports suggest that Nigerian authorities launched an investigation into Binance and detained two of the exchange’s executives upon their arrival in Nigeria to address concerns about the platform. The government has alleged that Binance Nigeria facilitated $26 billion in transactions from undisclosed sources during the previous year, further adding to the exchange’s legal troubles. As a result of the crackdown, Binance has removed Nigeria’s fiat currency, the Naira, from its peer-to-peer (p2p) platform.
The ongoing conflict between Binance and the Nigerian government follows a similar pattern to the exchange’s previous legal issues. Notably, Binance recently reached a settlement with US authorities, agreeing to pay a hefty fine exceeding $4 billion for non-compliance with financial regulations. These legal challenges have significant implications for Binance’s global operations and reputation, as they raise concerns about the company’s adherence to regulatory standards in different jurisdictions. As the situation unfolds in Nigeria, it remains to be seen how Binance will navigate its legal challenges and maintain its position in the cryptocurrency market.