The government of Nigeria has filed tax evasion charges against Binance, the world’s leading cryptocurrency exchange platform.
The charges were filed before the Federal High Court in Abuja on March 25, 2024, by the Federal Inland Revenue Service (FIRS), marking a decisive move to enforce tax compliance within the burgeoning digital economy.
The FIRS has accused Binance of facilitating customer tax evasion and failing to adhere to Nigerian tax regulations.
Specifically, the lawsuit alleges that Binance committed four separate tax offenses: non-payment of Value Added Tax (VAT), failure to file tax returns, non-payment of Company Income Tax (CIT), and aiding customer tax evasion.
$4.3 Billion to the U.S. Government and $10.3 Billion to the Nigerian Government
This legal action comes on the heels of Binance’s recent plea of guilty to violating anti-money laundering laws in the United States, which resulted in a hefty $4.3 billion penalty.
The Nigerian case further intensifies the scrutiny of Binance’s global operations, particularly regarding its adherence to tax laws and regulatory frameworks.
The FIRS has detailed its allegations, claiming that Binance did not register with the FIRS for tax purposes as required by law, and its platform operations violated established tax regulations in Nigeria.
The lawsuit also names Tigran Gambaryan and Nadeem Anjarwalla, senior Binance executives, as the second and third defendants. They are currently under the custody of the Economic and Financial Crimes Commission (EFCC).
The outcome of this lawsuit is poised to have a profound impact on the regulation of cryptocurrency activities in Nigeria. It could set a precedent for future enforcement actions against other crypto entities operating within the country.
As the case unfolds, it will be closely monitored by industry players, investors, and regulators alike, as it may shape the trajectory of cryptocurrency regulation and compliance in Nigeria and potentially across the African continent.
