The Federal Government of Nigeria has imposed a staggering fine of $10 billion on Binance, a prominent cryptocurrency trading platform, citing allegations of exacerbating the country’s forex crisis.
According to Bayo Onanuga, the special adviser to President Bola Tinubu on information and strategy, the fine was levied due to Binance’s purported involvement in illegal transactions that significantly contributed to Nigeria’s forex woes. In an interview with the BBC on Friday morning, Onanuga disclosed that Binance operated without proper registration or presence in Nigeria, yet profited immensely from its activities in the country.
Onanuga alleged that Binance manipulated dollar-naira exchange rates, a practice that adversely affected the local currency’s value. He emphasized that the Central Bank of Nigeria (CBN) is the sole authority empowered to determine exchange rates, and Binance’s interference posed a threat to the nation’s economic stability.
Highlighting the severity of the situation, Onanuga asserted, “The platform fixes the exchange rate in Nigeria, which is illegal. Binance harbors a lot of people who fix exchange rates which impacted the country badly at a time when the government is trying to stabilize the economy.” He further attributed a significant portion of the recent 70% depreciation in the Naira’s value to Binance’s speculative activities.
The Office of the National Security Adviser (ONSA) confirmed that Binance is under investigation by Nigerian authorities. Zakari Mijinyawa, head of Strategic Communication at the ONSA, revealed that an interagency investigation is underway to scrutinize Binance’s operations in collaboration with the CBN and other law enforcement agencies.
Earlier reports indicated the arrest and detention of two top Binance executives over alleged manipulations in forex trading and speculative activities. These actions followed Nigeria’s crackdown on various cryptocurrency trading platforms.
In light of these developments, Onanuga called for the ban of Binance, Kucoin, and other trading platforms in Nigeria. He urged the Economic and Financial Crimes Commission (EFCC) and the CBN to swiftly intervene and terminate the operations of these crypto exchanges in the country.
Expressing concerns over Binance’s global regulatory troubles, Onanuga emphasized the need to prevent the platform from dictating the Naira’s value on its exchange platform, given its restrictions in multiple jurisdictions worldwide.
As the regulatory scrutiny intensifies and accusations against Binance mount, the future of cryptocurrency trading in Nigeria remains uncertain, with significant implications for the country’s forex market and financial stability.
