A Nigerian court has set the verdict date for the tax evasion trial against cryptocurrency exchange Binance for October 11. Binance faces four counts of tax evasion, including failure to register with Nigeria’s Federal Inland Revenue Service (FIRS).
Court Proceedings and Defense Strategy
On July 12, Binance’s lawyer, Ayodele Omotilewa, appeared in court and entered 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 the previous dismissal of charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla.
In June, the Federal High Court in Abuja cleared Gambaryan and Anjarwalla of tax evasion charges. Although cleared of these charges, both executives still face separate money laundering allegations, which they deny.
Case Background and Context
The charges against Binance and its executives stem from an incident in February when Nigerian authorities detained Anjarwalla and Gambaryan during a visit to Nigeria. They were held for several weeks on allegations of tax evasion and money laundering.
While Binance has not commented on the latest developments, it previously called for the dismissal of the charges. Nigeria, on the other hand, has linked 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.
Also Read: Nigerian Central Bank Accuses Binance of Unauthorized Transactions
Government Stance and Regulatory Actions
The crackdown on cryptocurrency activities aligns with the stance of Nigeria’s National Security Adviser, who views cryptocurrency trading as a national security risk. In response, the Central Bank of Nigeria (CBN) has directed fintech companies to identify and report accounts involved in cryptocurrency transactions and take appropriate measures to prevent further activity.
On July 6, the CBN payment policy and regulation chief appeared in court, arguing that only banks and authorized financial institutions should process deposit and withdrawal transactions for Binance.
Implications and Next Steps
Judge Nwite’s decision to adjourn the case until October allows for further deliberation and review of the evidence presented. This extension provides both the defense and the prosecution additional time to prepare their cases.
The outcome of this trial could have significant implications for Binance’s operations in Nigeria and the broader regulatory environment for cryptocurrencies in the country. The Nigerian government’s approach to regulating digital assets continues to evolve, reflecting broader concerns about financial stability and national security.
