A Nigerian court has scheduled the verdict for the tax evasion trial against cryptocurrency exchange Binance for October 11. The company faces four counts of tax evasion, including failure to register with Nigeria’s Federal Inland Revenue Service (FIRS).
Binance Pleads Not Guilty
On July 12, Binance’s lawyer, Ayodele Omotilewa, appeared in court, entering a not-guilty plea to all charges before Judge Emeka Nwite. Omotilewa urged the judge to dismiss the charges, arguing that the case lacks substance, similar to a previous dismissal of charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla.
Judge Nwite decided to adjourn the case until October to allow for further deliberation and review of the evidence. This adjournment provides both the defense and the prosecution additional time to prepare their respective cases.
Background of the Case
In February, Nigerian authorities detained Anjarwalla and Gambaryan during a visit to Nigeria, holding them for several weeks amid allegations of tax evasion and money laundering. In June, the Federal High Court in Abuja cleared Gambaryan and Anjarwalla of tax evasion charges but they still face separate money laundering charges, which they both deny.
While Binance has not commented on the latest developments, the company previously stated that the charges should be dismissed. Nigeria has attributed its currency issues to Binance, claiming that cryptocurrency platforms have become the preferred method for trading the Nigerian naira amid severe dollar shortages and the fiat currency’s record low value.
National Security Concerns
The crackdown on cryptocurrency activities aligns with the National Security Adviser’s stance that cryptocurrency trading poses a national security risk. The Central Bank of Nigeria (CBN) instructed fintech companies to identify and report accounts involved in cryptocurrency transactions and take appropriate action to prevent further activity. On July 6, the CBN payment policy and regulation chief argued in court that only banks and authorized financial institutions should process deposit and withdrawal transactions for Binance.
The upcoming verdict will determine Binance’s future operations in Nigeria and could set a precedent for the treatment of cryptocurrency exchanges in the country.
