In a bold move, Nigeria has imposed a staggering $10 billion fine on the cryptocurrency exchange Binance. This decision comes in the wake of allegations that the platform engaged in “illegal transactions” that profited from unauthorized exchange rate fixes. Bayo Onanuga, a special advisor to President Bola Tinubu, revealed this hefty penalty during a recent interview with the BBC.
A Crackdown on Cryptocurrency Exchanges
Nigeria’s actions against Binance did not start with the fine. Earlier in the week, authorities detained several of the exchange’s executives as part of a broader effort to clamp down on tax evasion by unregistered exchanges. This development signals the Nigerian government’s firm stance against Binance and its operations within the country.
Binance’s Troubles Mount
Binance, one of the world’s largest cryptocurrency exchanges, has had its share of challenges over the past few months. The exchange has been under scrutiny from the United States for years, leading to significant fines and changes in its leadership. Now, with the Nigerian government’s recent actions, Binance faces yet another major hurdle.
The Reason Behind the Fine
The fine was announced shortly after the detention of Binance’s executives in Nigeria, marking a significant escalation in the government’s campaign against the exchange. According to advisor Onanuga, Binance’s practice of setting its own exchange rates for transactions in Nigeria was illegal. “The platform fixes the exchange rate for the country and it is an illegal rate. The CBN is the only authority that can fix the change rate for the country,” Onanuga stated. He further criticized Binance for harboring individuals who manipulate the exchange rate, adversely affecting the Nigerian economy at a critical time.
The Impact on the Nigerian Economy
Nigeria is currently grappling with a currency crisis, with the Naira hitting record lows against the US Dollar. Onanuga has long advocated for Binance to be held accountable for its perceived negative impact on Nigeria’s economic stability. The fine and recent government actions reflect a decisive effort to address these concerns and regulate the influence of cryptocurrency exchanges on the national economy.
