Nigeria has taken decisive action against cryptocurrency exchange platform Binance, imposing a staggering $10 billion fine amidst a crackdown on its operations. The move follows allegations of substantial profit from illicit transactions within Nigeria, prompting significant losses to the nation’s economy.
Investigation Initiated by National Security Adviser
The Office of the National Security Adviser (ONSA) has announced the commencement of an investigation into Binance’s activities. This interagency probe, coordinated with the Central Bank of Nigeria (CBN) and other law enforcement agencies, aims to scrutinize the platform’s operations, particularly in the foreign exchange market.
Earlier in the week, Nigerian authorities detained two Binance executives in Abuja during negotiations. The discussions, aimed at resolving the dispute, reached an impasse as Binance officials refused to meet certain governmental demands. Allegations included operating a billion-dollar business without proper registration and documentation.
Government’s Demands and Binance’s Response
The Nigerian government has demanded extensive data from Binance executives regarding transactions involving the Nigerian Naira over the past seven years. Additionally, they requested the deletion of specific Nigerian-related data from the platform. However, Binance executives insisted on being escorted to their respective embassies before compliance.
Legal Actions and Allegations
A court warrant was obtained by the government to detain the executives for at least twelve days initially. The absence of formal registration and physical presence in Nigeria led to allegations against Binance, including the arbitrary fixing of dollar-naira rates, adversely affecting the local currency’s value.
Cooperation and Suspension of Naira Transactions
Bayo Onanuga, the special adviser on information and strategy to President Bola Tinubu, stated that Binance is cooperating with the Nigerian authorities, providing relevant information, and suspending naira-related transactions on the platform. He emphasized the criticality of clamping down on Binance to prevent further economic harm to the country.
The Nigerian government’s stringent measures against Binance underscore the increasing regulatory scrutiny faced by cryptocurrency exchanges worldwide. As the investigation unfolds, the outcome will significantly impact the landscape of digital asset trading in Nigeria and beyond.
