The Nigerian government has intensified its scrutiny of cryptocurrency exchanges, particularly focusing on Binance, the world’s largest cryptocurrency exchange by trading volume. Amid allegations of facilitating the illegal outflow of funds totaling $26 billion, the government has demanded a staggering $10 billion from Binance, according to reports from the BBC.
Central bank Governor Olayemi Cardoso raised concerns over Binance’s role in allowing significant amounts of untraceable funds to leave the country, exacerbating Nigeria’s foreign exchange crisis. As the government grapples with capital outflows, it seeks ways to restrict such movements, prompting the hefty fine against Binance.
However, confusion surrounds the exact nature of the fine. Bayo Onanuga, a spokesperson for President Bola Tinubu, initially confirmed the $10 billion demand, citing Binance’s alleged illegal operations in Nigeria. Onanuga stated that Binance had overstepped its authority by setting exchange rates for the Nigerian naira, a prerogative reserved solely for the central bank.
Subsequently, Onanuga clarified his remarks to the Nigerian news service Peoples Gazette, asserting that his statements had been misconstrued. While acknowledging the possibility of heavy fines on Binance, he emphasized that the final amount had not been determined, nor had Binance been formally notified.
The Nigerian government accuses Binance of operating unlawfully in the country, contributing to widespread economic disruption and a significant depreciation of the naira, which has weakened by 70% in recent months. The government’s actions signal a broader crackdown on cryptocurrency exchanges operating outside regulatory frameworks.
In a related development, two Binance executives were reportedly detained and had their passports confiscated upon arrival in Nigeria. This incident underscores the escalating tensions between Binance and Nigerian authorities, who have been investigating crypto exchanges to ensure compliance with regulations, as reported by the Financial Times.
