Just-In: Binance Faces $10B Fine Amid Nigeria’s Crypto Crackdown

Nigeria has intensified its regulatory measures against Binance, one of the world’s leading cryptocurrency exchange platforms. The Nigerian government has demanded a staggering $10 billion fine from Binance, alleging its involvement in illicit activities within the country’s crypto space as well as linkages to the currency devaluation.

As part of its efforts to maintain stability in its local currency amidst increasing crypto transactions, Nigeria has taken a firm stance against Binance. Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, highlighted Binance’s purported engagement in illegal transactions, emphasizing the significant impact on Nigeria’s financial ecosystem.

Government Confirms Investigation into Binance Operations

The Office of the National Security Adviser (ONSA) has officially announced an ongoing investigation into the operations of Binance. Zakari Mijinyawa, head of Strategic Communication at ONSA, affirmed the interagency effort to scrutinize Binance’s activities in Nigeria.

Two senior executives of Binance were detained in Abuja, Nigeria’s capital, following their failure to comply with government directives and inadequate documentation. The Nigerian authorities demanded crucial data regarding transactions involving the Nigerian Naira on the Binance platform, prompting a standoff with Binance executives who insisted on embassy intervention.

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Binance Faces Allegations of Economic Disruption

Bayo Onanuga reiterated allegations against Binance, accusing the platform of operating without proper registration or presence in Nigeria. Concerns were raised about Binance’s alleged manipulation of dollar-naira rates, which reportedly impacted the country’s local currency negatively.

Despite the mounting pressure, Binance has shown willingness to cooperate with Nigerian authorities by suspending naira-related transactions. However, the Nigerian government remains steadfast in its demand for a hefty $10 billion fine as retribution for alleged damages caused by Binance’s activities.

This unfolding situation not only underscores Nigeria’s regulatory stance on cryptocurrency exchanges but also raises broader questions about the implications of such actions on the global crypto market. As the investigation continues and tensions escalate, stakeholders are closely monitoring the outcome and its potential ramifications for cryptocurrency regulations worldwide.

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