Nigerian Government Presses Binance for $10 Billion Over Alleged Illegal Transactions

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Nigeria has demanded that Binance, the world’s largest cryptocurrency exchange, pay a $10 billion penalty fee, according to the latest report by BBC. This demand comes from accusations that the platform played a role in the significant depreciation of Nigeria’s fiat currency. The Nigerian currency, Naira, has seen a nearly 70% drop in value in recent months, a situation the government attributes to Binance’s operations.

Crackdown on Currency Chaos

The main issue here is the alleged manipulation of exchange rates by Binance. Under President Ahmed Tinubu’s guidance, the Nigerian government claims that the platform’s activities have not only destabilized the Naira but also facilitated illegal financial transactions, including money laundering, theft, and fraud. As a result, the government has taken an aggressive approach, arresting two international executives from Binance and placing them under investigation on allegations related to money laundering and terrorist funding.

Nigeria’s central bank, the Central Bank of Nigeria (CBN), highlighted that approximately $26 billion had flowed through Binance’s Nigerian operations, involving transactions that the CBN could not fully trace. This lack of transparency has raised concerns over the integrity of cryptocurrency transactions within the country, which has had a long history of skepticism against the crypto industry.

Regulatory Reckoning and Compliance Calls

Further complicating matters is Binance’s legal status in Nigeria. According to Bayo Onanuga, a spokesperson for President Bola Tinubu, the cryptocurrency giant and other similar entities had not registered as required by Nigerian law. This oversight became more apparent after the Nigerian government lifted its ban on cryptocurrencies with the condition that all operators must be duly registered.

In response to government pressures, Binance reportedly began cooperating, removing Naira transactions from its platform and engaging in talks to ensure compliance with Nigerian regulations. This gesture of cooperation is seen as a step toward resolving the dispute, although the outcome and the duration of the ongoing investigation remain unknown.