Federal Government Imposes $10 Billion Penalty On Binance

Federal Government Imposes $10 Billion Penalty On Binance

The Nigerian federal government has imposed a hefty $10 billion fine on the cryptocurrency trading platform, Binance, citing allegations of its involvement in exacerbating the country’s forex crisis…..READ ALSO

In a statement made on Friday morning, March 1, during an interview with the BBC, Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, revealed this development.

Onanuga highlighted that Binance purportedly garnered significant profits from what he termed as “illegal transactions” within Nigeria, while the nation incurred substantial losses. He pointed out that Binance lacks registration in Nigeria and does not maintain a physical presence in the country.

Allegations were made against the platform for manipulating dollar-naira exchange rates, a practice alleged to have adverse effects on the local currency’s value. Onanuga mentioned that Binance has begun cooperating with the Nigerian government by furnishing valuable information and has already halted naira-related transactions on its platform.

“The platform dictates the exchange rate in Nigeria, which contravenes the law. The Central Bank of Nigeria holds the sole authority to determine Nigeria’s exchange rate. Binance harbors numerous individuals who manipulate exchange rates, causing detrimental effects to the country during a period when the government is striving to stabilize the economy,” Onanuga stated.

He further asserted that Binance’s activities contributed to the surge in foreign exchange rates through currency speculation, leading to a nearly 70% depreciation in the value of the Naira in recent months.