The Nigerian government is considering imposing a hefty fine of $10 billion on cryptocurrency exchange Binance. Reports suggest that Bayo Onanuga, the special adviser to the Nigerian president, accused Binance of profiting from facilitating illegal transactions in the African country, causing significant financial losses. Onanuga stated that the proposed fine is a form of retribution for the exchange’s actions, adding that Binance operated in Nigeria without proper registrations.
Binance has yet to respond to requests for comment from CryptoSlate, but it is reported that the exchange is cooperating with ongoing investigations in Nigeria. Premium Times Editor Oladeinde Olawoyin mentioned that the government has acknowledged Binance’s cooperation by providing valuable information and suspending naira-related transactions on its platform. This aligns with Binance’s commitment to collaborating with local authorities to establish a secure platform for users.
The Nigerian government has recently intensified its scrutiny of Binance’s involvement in the country’s foreign exchange issues. Authorities have launched an investigation and arrested two of the exchange’s executives for allegedly facilitating $26 billion in transactions from undisclosed sources. In response to the crackdown, Binance removed Nigeria’s fiat currency, Naira, from its peer-to-peer platform. Despite these developments, Binance has not made any new public statements regarding its situation in Nigeria.
Binance’s clash with the Nigerian government follows its settlement with US authorities, where it agreed to pay a record fine of over $4 billion for violating financial regulations. The situation in Nigeria adds to the exchange’s legal troubles and raises concerns about its operations in various jurisdictions. As industry leaders, Binance is expected to work closely with regulators and lawmakers to address compliance issues and maintain a transparent and secure platform for users worldwide.
The Nigerian government’s threat of a $10 billion fine against Binance underscores the growing regulatory challenges faced by cryptocurrency exchanges. It highlights the importance of adhering to local laws and regulations to avoid legal repercussions and ensure a safe environment for users. Binance’s cooperation with authorities in Nigeria and other countries will be crucial in addressing concerns and building trust in the cryptocurrency industry.