Nigeria Government Demands $10B From Crypto Exchange Binance

Nigeria Government Demands $10B From Crypto Exchange Binance
  • Binance set an unofficial exchange rate and contributed to economic disruption in Nigeria, a presidential spokesperson said.
  • Nigeria demands $10 billion retribution from Binance amid accusations of illegal transactions
  • Two Binance executives detained in Abuja as government probes alleged violations.

Nigeria’s government has demanded $10 billion from Binance. This comes after central bank Governor Olayemi Cardoso said the largest cryptocurrency exchange by trading volume had enabled $26 billion of untraceable funds to leave the country as it faces a foreign exchange crisis and is looking for ways to restrict capital outflows.

The fine was levied because of the exchange’s alleged illegal operations in the country, according to Bayo Onanuga. The exchange is setting an exchange rate for the Nigerian naira when only the central bank has that authority, Onanuga said.

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.

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.

Despite the mounting pressure, Binance has shown a 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.

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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