The Nigerian government is contemplating imposing fines as high as $10 billion on Binance, a major cryptocurrency exchange. Reports from local media sources suggest that Bayo Onanuga, the special adviser to the Nigerian president, has accused Binance of profiting from facilitating illegal transactions within the country, leading to substantial losses for Nigeria. Onanuga views the proposed fine as a form of retribution for the exchange’s actions. Additionally, the reports highlight that Binance operated in Nigeria without obtaining the necessary registrations.
Despite the allegations and looming fines, Binance has not responded to inquiries from CryptoSlate regarding the situation. However, the exchange is reportedly cooperating with the ongoing investigations by Nigerian authorities. Premium Times Editor Oladeinde Olawoyin mentioned that the government acknowledged Binance’s collaboration by providing valuable information and suspending naira-related transactions on its platform. Binance has previously committed to working closely with local authorities to ensure a secure and compliant platform for its users, emphasizing its dedication to addressing non-compliance issues.
In recent weeks, the Nigerian government has intensified its scrutiny of Binance’s involvement in the country’s foreign exchange activities. Authorities have launched an investigation into the exchange and arrested two of Binance’s executives upon their arrival in Nigeria to address the ban on the platform. Allegations suggest that Binance Nigeria facilitated $26 billion in transactions from undisclosed sources in the previous year. Responding to the crackdown, Binance removed Nigeria’s fiat currency, Naira, from its peer-to-peer platform but has not issued any new public statements concerning the situation in Nigeria.
International Legal Troubles
The clash between Binance and the Nigerian government comes shortly after the exchange settled with US authorities. Last year, Binance agreed to pay a hefty fine exceeding $4 billion due to violations of financial regulations. The consecutive legal challenges in different jurisdictions raise concerns about Binance’s compliance with the varying regulatory frameworks of different countries.
The ongoing dispute between the Nigerian government and Binance underscores the challenges faced by cryptocurrency exchanges operating in multiple jurisdictions. The potential imposition of significant fines and legal repercussions highlight the importance of compliance and cooperation with regulatory authorities to maintain a secure and lawful environment for cryptocurrency trading.