The Nigerian government is reportedly considering imposing fines of up to $10 billion on Binance. According to local media outlets, Bayo Onanuga, the special adviser to the Nigerian president, accused the exchange of profiting from facilitating illegal transactions in the African country, leading to significant losses for the nation. Onanuga sees the proposed fine as a form of retribution for Binance’s actions. Furthermore, the report highlighted that Binance operated in Nigeria without proper registrations, raising concerns about its compliance with local regulations.
As of the latest update, Binance has not responded to CryptoSlate’s request for comment regarding the alleged fines from the Nigerian government. However, the exchange is said to be cooperating with the ongoing investigations in the country. Premium Times Editor, Oladeinde Olawoyin, mentioned that the Nigerian government acknowledged Binance’s cooperation by providing useful information and suspending naira-related transactions on its platform. Binance has always emphasized its commitment to working with local authorities to ensure a secure and compliant platform for its users, stating, “As industry leaders, we are collaborating with authorities, lawmakers, and regulators to address any compliance issues.”
Nigeria’s Increased Scrutiny of Binance
Over the past weeks, the Nigerian government has intensified its scrutiny of Binance’s involvement in the country’s foreign exchange (FX) matters. Reports confirm that Nigerian authorities have launched an investigation into Binance and even arrested two of the exchange’s executives upon their arrival in Nigeria to discuss the ban on the crypto exchange website. The authorities allege that Binance Nigeria facilitated $26 billion in transactions from undisclosed sources in the previous year. In response to the crackdown, Binance removed Nigeria’s fiat currency, Naira, from its peer-to-peer platform, without making any new public statements on the situation.
The clash between Binance and the Nigerian government adds to the exchange’s recent legal troubles, including its settlement with US authorities. In the United States, Binance agreed to pay a historic fine exceeding $4 billion for non-compliance with financial laws. This settlement reflects a pattern of regulatory challenges that Binance is facing in different jurisdictions, raising concerns about its operations and regulatory oversight globally.
The Nigerian government’s threat to fine Binance and the ongoing investigations into the exchange’s activities in the country highlight the increasing regulatory challenges faced by cryptocurrency platforms worldwide. As authorities tighten their grip on the digital asset industry, exchanges like Binance must prioritize compliance and cooperation with regulatory bodies to ensure their long-term viability and reputation in the market.
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