Nigerian Government Seeks $10 Billion Fine from Binance Amid Allegations of Contributing to Naira’s Decline
Binance, a prominent cryptocurrency exchange, is facing yet another setback as the Nigerian government imposes a hefty $10 billion fine on the company. The government alleges that Binance’s actions have contributed to a significant devaluation of the Nigerian naira (NGN).
According to a recent report by the BBC, Bayo Onanuga, a journalist and special adviser on information & strategy for the Nigerian president, disclosed the details of the fine. He explained that Binance allowed individuals to engage in “illegal transactions” through its trading platform.
Earlier this week, Binance’s peer-to-peer (P2P) platform for NGN currency went offline. The government claims that Nigerian P2P traders on Binance were responsible for setting the exchange rate for the USD/NGN pair. For instance, last week, $1 was being traded for over ₦1,800. However, since Binance disabled its P2P feature for Nigerians, the exchange rate has rebalanced, and $1 is now trading for around ₦1,600.
Onanuga pointed out that these actions by Nigerian crypto traders on Binance, along with other factors, have caused the naira to plummet by nearly 70% in recent months. He emphasized that the Central Bank of Nigeria (CBN), the nation’s central bank, is the only entity authorized to determine the exchange rate against any foreign currency.
Highlighting Binance’s responsibility in the situation, Onanuga stated during a recent meeting that Nigerians had conducted $26 billion worth of trades through Binance’s P2P platform in a year. This further strengthens the case against the cryptocurrency exchange.
This is not the first time Binance has faced hefty fines from a government. A few months ago, the company was penalized a staggering $4.3 billion by U.S. authorities for criminal offenses. As part of the settlement, its founder, Changpeng Zhao (CZ), stepped down from the role of CEO.
In a recent development, a report from the Financial Times revealed that two senior Binance officials were arrested, and their passports were seized by the Nigerian government. These officials had arrived in Nigeria last week, coinciding with the government’s ban on crypto trading websites, which is still in effect.
Tags: Binance, Nigeria, Regulation
