ABUJA, Nigeria – The Nigerian federal government has levied a staggering $10 billion fine against the cryptocurrency trading platform Binance, accusing it of exacerbating the nation’s foreign exchange crisis.
Bayo Onanuga, President Bola Tinubu’s special adviser on information and strategy, revealed the punitive measure during a BBC interview on Friday, March 1, 2024.
According to Onanuga, Binance engaged in “illegal transactions” that not only yielded significant profits for the platform but also inflicted considerable losses on Nigeria.
He highlighted that Binance operates outside the Nigerian jurisdiction, lacking any formal registration within the country, and accused its users of arbitrarily setting dollar-naira exchange rates, thereby undermining the local currency’s value.
The government’s action comes in response to Binance’s cessation of naira-related transactions and its cooperation with Nigerian authorities by providing useful information.
Onanuga stressed the negative impact of Binance’s activities on Nigeria’s economy, particularly its role in the illegal fixing of exchange rates—a task exclusively reserved for the Central Bank of Nigeria (CBN).
Binance’s operations have been linked to a significant increase in foreign exchange rates through currency speculation, contributing to a nearly 70% devaluation of the naira in recent months.
This situation prompted calls from Onanuga for the CBN and the Economic and Financial Crimes Commission (EFCC) to address platforms attempting to manipulate the naira’s value through cryptocurrency exchanges.
The special adviser’s concerns were further amplified by the naira trading at N1680/$ on a cryptocurrency platform, leading him to advocate for the prohibition of cryptocurrency channels in Nigeria to prevent further depreciation of the national currency.
Onanuga’s statements reflect a broader governmental effort to tackle currency manipulation and stabilize the economy.
The imposition of the fine on Binance underscores Nigeria’s commitment to safeguarding its financial sovereignty and the integrity of its currency amidst the challenges posed by unregulated cryptocurrency operations.
The case against Binance highlights the ongoing global debate surrounding cryptocurrency regulation and its impact on national economies.
