The Federal Government has levied a $10 billion fine against the cryptocurrency trading platform, Binance, citing accusations of exacerbating Nigeria’s forex crisis. Bayo Onanuga, Special Adviser to President Bola Tinubu on information and strategy, disclosed this development in an interview with the BBC on Friday morning.
In a significant move amid Nigeria’s ongoing forex crisis, the Federal Government has imposed a hefty $10 billion penalty on Binance, a leading cryptocurrency trading platform. Bayo Onanuga, Special Adviser to President Bola Tinubu on information and strategy, revealed the imposition of the fine during an interview with the BBC on Friday.
Onanuga accused Binance of significantly profiting from what he termed “unlawful transactions” within Nigeria while the nation endured substantial economic losses. Alleging that Binance operates without proper registration or physical presence in Nigeria, Onanuga contended that the platform facilitates arbitrary fixing of dollar-naira exchange rates, negatively impacting the local currency’s value.
The Special Adviser noted that Binance had begun cooperating with Nigerian authorities by providing valuable information and suspending naira-related transactions on its platform.
Addressing the allegations, Onanuga emphasized, “The platform arbitrarily sets exchange rates in Nigeria, contravening legal norms. Only the Central Bank of Nigeria has the authority to determine exchange rates.” He further accused Binance of harboring individuals who manipulate exchange rates, exacerbating economic instability.
The Office of the National Security Adviser (ONSA) has confirmed an ongoing investigation into Binance’s operations in Nigeria. Zakari Mijinyawa, Head of Strategic Communication at the ONSA, stated that the investigation, in collaboration with the Central Bank of Nigeria and other enforcement agencies, aims to scrutinize Binance’s activities.
Earlier reports indicated the arrest of two top Binance executives over alleged forex trading manipulations. The executives’ detention followed Nigeria’s recent crackdown on various cryptocurrency trading platforms.
Onanuga has called for the prohibition of Binance, Kucoin, and other trading platforms in Nigeria, urging the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to intervene promptly. He criticized Nigerians trading on Binance for unpatriotic behavior, asserting that Binance’s regulatory troubles in other jurisdictions demonstrate its unsuitability to dictate the Naira’s value on its platform.
The Federal Government’s imposition of a $10 billion fine on Binance marks a significant development in Nigeria’s efforts to address the ongoing forex crisis. With allegations of unlawful activities and exchange rate manipulation, the scrutiny on cryptocurrency trading platforms intensifies as authorities aim to restore stability to the country’s financial landscape.
Credit: Nairametrics
