March 27, 2024
Nigeria Seeks $10 Billion from Binance, BBC Report
Latest Cryptocurrency News

Nigeria Seeks $10 Billion from Binance: BBC Report

The Nigerian government is reportedly seeking $10 billion from Binance, the largest cryptocurrency exchange by trading volume. The demand comes amid allegations that Binance facilitated the unauthorized outflow of $26 billion in untraceable funds from the country, addressing a foreign exchange crisis and attempting to curb capital outflows.

Central Bank Governor Olayemi Cardoso accused Binance of engaging in illegal operations within Nigeria. Bayo Onanuga, a spokesperson for President Bola Tinubu, stated that the fine was imposed due to Binance’s alleged role in setting an exchange rate for the Nigerian naira, a prerogative reserved for the central bank. Onanuga clarified that his earlier remarks were misinterpreted, emphasizing that the government might impose heavy fines on Binance, but the amount, speculated to be $10 billion, has not been finalized or officially communicated to Binance.

Nigerian authorities argue that Binance, operating without registration in the country, has caused significant economic disruption and contributed to a 70% depreciation of the naira in recent months. The government’s move to restrict capital outflows aligns with its efforts to address the foreign exchange crisis.

On Wednesday, reports emerged that two Binance executives were detained upon their arrival in Nigeria, with their passports confiscated. The government’s scrutiny of crypto exchanges in Nigeria has been ongoing, with investigations into their operations and impact on the national economy.

The $10 billion demand adds to the challenges faced by Binance, which has been at the forefront of the global cryptocurrency market. The allegations of unauthorized fund outflows and the reported detention of its executives highlight the intensifying regulatory scrutiny faced by major cryptocurrency platforms worldwide.

As the situation unfolds, the cryptocurrency industry closely watches the developments in Nigeria, recognizing the potential ramifications for Binance and the broader crypto market. The government’s actions reflect the growing regulatory landscape for digital assets, emphasizing the need for exchanges to adhere to local regulations to avoid legal repercussions and foster a stable financial environment.

Image by Kaufdex from Pixabay

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