Nigeria Imposes $10 Billion Fine on Binance, Alleging Currency Devaluation
In a shocking turn of events, Nigeria has levied a staggering $10 billion fine against Binance, the leading global cryptocurrency exchange. The government accuses the platform of playing a significant role in devaluing the Nigerian currency, the Naira, by nearly 70% through speculative exchange rate manipulations.
According to an exclusive report by BBC, Bayo Onanuga, speaking on behalf of President Bola Tinubu’s administration, revealed the government’s grievances. He stated, “The platform fixes the exchange rate for the country and it is an illegal rate. The CBN is the only authority that can fix the exchange rate for the country.”
The situation escalated further with the recent arrest of two foreign Binance executives, who are currently under interrogation for serious allegations, including aiding in money laundering and financing terrorism. Central Bank of Nigeria Governor Olayemi Cardoso disclosed that about $26 billion passed through Binance Nigeria in cryptocurrency trades, with many transactions involving sources and users that cannot be adequately identified.
Despite the controversy, Onanuga acknowledged that Binance’s staff are beginning to cooperate with the investigation. He highlighted the lack of formal registration of Binance and similar cryptocurrency entities under Nigerian law, stating, “Binance and other crypto companies are not registered according to our laws.”
The government is demanding close to $10 billion in damages, emphasizing the detrimental impact on the Nigerian economy. As investigations continue, the future of Binance’s operations in Nigeria remains uncertain. Zakari Mijinyawa, head of the press department of the Office of the National Security Adviser to the President, stated that discussions and agreements are ongoing with Binance officials, and they are cooperating.
At press time, the BNB price did not show any severe reaction to the news, trading at $407.6. The government’s actions have sent shockwaves through the cryptocurrency community, raising questions about the regulation of digital assets in Nigeria and the global implications of such a significant fine on a major exchange like Binance.
